As filed with the Securities and Exchange Commission on June 14, 2011
Registration No. 333-
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form S-1
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
Premier Biomedical, Inc.
(Exact name of registrant as specified in its charter)
Nevada
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2836
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27-2635666
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(State or other jurisdiction of
incorporation or organization
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(Primary Standard Industrial
Classification Code Number)
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(I.R.S. Employer
Identification No.)
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10805 Fallen Leaf Lane
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Port Richey, FL 34668
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(814) 786-8849
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(Address, including zip code, of registrant’s principal executive offices)
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(Telephone number, including area code)
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William A. Hartman
Chief Executive Officer
Premier Biomedical, Inc.
10805 Fallen Leaf Lane
Port Richey, FL 34668
(814) 786-8849
(Name, address, including zip code, and telephone
number, including area code, of agent for service)
COPIES TO:
Brian A. Lebrecht, Esq.
The Lebrecht Group, APLC
406 W. South Jordan Parkway, Suite 160
South Jordan, UT 84095
(801) 983-4948
Approximate date of commencement of proposed sale to the public:
From time to time after this registration statement becomes effective.
If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, check the following box.
x
If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering.
¨
If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering.
¨
If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering.
¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer
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Accelerated filer
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o
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Non-accelerated filer
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Smaller reporting company
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(Do not check if a smaller reporting company)
CALCULATION OF REGISTRATION FEE
Title of each
class of
securities to be
registered
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Amount
to be
registered
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Proposed
maximum
offering price
per share
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Proposed
maximum
aggregate
offering price
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Amount of
registration
fee
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Common Stock of certain selling shareholders
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951,200
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(1)
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$
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0.25
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(2)
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$
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237,800
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$
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27.61
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Common Stock underlying the exercise of warrants by certain selling shareholders
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723,200
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(3)
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$
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0.10
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(4)
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$
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72,320
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$
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8.40
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Total Registration Fee
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$
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36.01
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(1)
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Consists of shares of common stock held by ninety-five selling shareholders. Pursuant to Rule 416 of the Securities Act, this registration statement shall be deemed to cover additional securities (i) to be offered or issued in connection with any provision of any securities purported to be registered hereby to be offered pursuant to terms that provide for a change in the amount of securities being offered or issued to prevent dilution resulting from stock splits, stock dividends, or similar transactions and (ii) of the same class as the securities covered by this registration statement issued or issuable prior to completion of the distribution of the securities covered by this registration statement as a result of a split of, or a stock dividend paid with respect to, the registered securities.
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(2)
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There is currently no market for our common stock. The offering price per share for the selling security holders was estimated solely for the purpose of calculating the registration fee pursuant to Rule 457(a) and (o) under the Securities Act of 1933, as amended. For purposes of this calculation we used the last sale price at which the Company sold shares, which was in a private placement.
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(3)
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Consists of shares of common stock underlying the exercise of warrants held by 85 selling shareholders. Pursuant to Rule 416 of the Securities Act, this registration statement shall be deemed to cover additional securities (i) to be offered or issued in connection with any provision of any securities purported to be registered hereby to be offered pursuant to terms that provide for a change in the amount of securities being offered or issued to prevent dilution resulting from stock splits, stock dividends, or similar transactions and (ii) of the same class as the securities covered by this registration statement issued or issuable prior to completion of the distribution of the securities covered by this registration statement as a result of a split of, or a stock dividend paid with respect to, the registered securities.
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(4)
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The warrants are subject to certain restrictions on exercise.
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The registrant hereby amends this registration statement on such date or dates as may be necessary to delay its effective date until the registrant shall file a further amendment which specifically states that this registration statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933 or until the registration statement shall become effective on such date as the Commission, acting pursuant to said Section 8(a), may determine.
The information in this prospectus is not complete and may be changed. We may not sell these securities until the registration statement filed with the SEC is effective. This prospectus is not an offer to sell and it is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted.
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Subject to Completion, Dated June 13, 2011
Premier Biomedical, Inc.
PROSPECTUS
Up to 1,674,400
shares of common stock
We are hereby registering up to 951,200 shares, representing approximately 8.3% of our current outstanding common stock, for sale by ninety-five of our existing shareholders. We are also registering up to 723,200 shares underlying the exercise of outstanding warrants.
This offering will terminate when all 1,674,400 shares are sold or on _____________, 20__, unless we terminate it earlier.
Investing in our common stock involves risks. Premier Biomedical, Inc. is a research company that is developing medical treatments for Alzheimer’s disease, multiple sclerosis, amyotrophic lateral sclerosis, fibromyalgia, traumatic brain injury, blood sepsis and virema, and cancer. It is a development stage company with limited operations, no income, and limited assets, and you should not invest unless you can afford to lose your entire investment. The company’s independent auditors report on its financial statements for the period from May 10, 2010 (Inception) to December 31, 2010 expresses substantial doubt as to its ability to continue as a going concern. See “Risk Factors” beginning on page 4. Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.
All of the common stock registered by this prospectus will be sold by the selling stockholders on their own behalf at a price of $0.25 per share. The selling stockholders, and any participating broker-dealers, may be deemed to be “underwriters” within the meaning of the Securities Act of 1933, as amended, or the “Securities Act,” and any commissions or discounts given to any such broker-dealer may be regarded as underwriting commissions or discounts under the Securities Act.
Our common stock is not traded on any national securities exchange and is not quoted on any over-the-counter market. If our shares become quoted on the Over-The-Counter Bulletin Board, sales will be made at prevailing market prices or privately negotiated prices. Premier Biomedical, Inc. is not selling any of the shares of common stock in this offering and therefore will not receive any proceeds from this offering. The selling stockholders have informed us that they do not have any agreement or understanding, directly or indirectly, with any person to distribute their common stock.
The date of this prospectus is __________________, 2011
PROSPECTUS SUMMARY
PREMIER BIOMEDICAL, INC.
We are a research-based company that discovers and develops medical treatments for humans, specifically targeting the treatment of:
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Alzheimer’s Disease
(AD)
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Fibromyalgia
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Multiple Sclerosis
(MS)
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Traumatic Brain Injury
(TBI)
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Amyotrophic Lateral Sclerosis
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Blood Sepsis and Viremia
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(ALS/Lou Gehrig’s Disease)
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Cancer
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We have a two-fold corporate focus:
One is to target Alzheimer’s disease, ALS, Blood Sepsis, Leukemia, and other life-threatening cancers, and to do this we intend to develop our
Sequential-Dialysis Technique
. The methodology involved in this technique is largely unexplored and has been described by scientists as the “wild west” of modern medicine. Consequently, our first entry into this market carries significant obstacles before reaching the revenue-generation stage.
The other is the development of our proprietary drug
Feldetrex™
, a potential treatment for Multiple Sclerosis, Fibromyalgia, and Traumatic Brain Injury. The formulation used in the current
Feldetrex™
will be individually tailored to the various illnesses we intend to target, with each formulation being given a unique proprietary brand name.
To overcome the significant obstacles inherent to the development of our
Sequential-Dialysis Technique
and
Feldetrex™
drug, we are seeking to partner with prestigious institutions and pharmaceutical companies with the substantial infrastructure and resource capacity to perform experimentation and to engage in product development in an inexpensive and efficient manner.
Corporate Information
Premier Biomedical, Inc. was formed on May 10, 2010 in the State of Nevada.
Our corporate headquarters are located at 10805 Fallen Leaf Lane, Port Richey, Florida 34668, and our telephone number is (814) 786-8849. Our website is
www.premierbiomedicalinc.com
. Information contained on our website is not incorporated into, and does not constitute any part of, this prospectus.
The Offering
Securities Offered:
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Shares Offered by
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Selling Stockholders:
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We are registering 951,200 shares for sale by ninety-five selling stockholders, all of which are existing holders of our common stock (see list of Selling Stockholders).
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We are also registering 723,200 shares for sale by the same ninety-five selling shareholders upon the exercise of warrants held by them.
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RISK FACTORS
Any investment in our common stock involves a high degree of risk. You should consider carefully the following information, together with the other information contained in this prospectus, before you decide to buy our common stock. If one or more of the following events actually occurs, our business will suffer, and as a result our financial condition or results of operations will be adversely affected. In this case, the market price, if any, of our common stock could decline, and you could lose all or part of your investment in our common stock.
We are developing medical treatments for Alzheimer’s disease, multiple sclerosis, amyotrophic lateral sclerosis, fibromyalgia, traumatic brain injury, blood sepsis and virema, and cancer. We face risks in developing our products and services and eventually bringing them to market. We also face risks that our business model becomes obsolete. The following risks are material risks that we face. If any of these risks occur, our business, our ability to achieve revenues, our operating results and our financial condition could be seriously harmed.
Risk Factors Related to the Business of the Company
We have a limited operating history and our financial results are uncertain.
We have a limited history and face many of the risks inherent to a new business. As a result of our limited operating history, it is difficult to accurately forecast our potential revenue. Our revenue and income potential is unproven and our business model is still emerging. Therefore, there can be no assurance that we will provide a return on investment in the future. An investor in our common stock must consider the challenges, risks and uncertainties frequently encountered in the establishment of new technologies, products and processes in emerging markets and evolving industries. These challenges include our ability to:
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execute our business model;
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create brand recognition;
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manage growth in our operations;
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create a customer base in a cost-effective manner;
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access additional capital when required; and
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attract and retain key personnel.
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There can be no assurance that our business model will be successful or that it will successfully address these and other challenges, risks and uncertainties.
We will need additional funding in the future, and if we are unable to raise capital when needed, we may be forced to delay, reduce or eliminate our product development programs, commercial efforts, or sales efforts.
Developing products and processes, conducting clinical trials, seeking approvals for such products from regulatory authorities, establishing manufacturing capabilities and marketing developed products is costly. We will need to raise substantial additional capital in the future in order to execute our business plan and fund the development and commercialization of our product candidates.
We may need to finance future cash needs through public or private equity offerings, debt financings or strategic collaboration and licensing arrangements. To the extent that we raise additional funds by issuing equity securities, our stockholders may experience additional dilution, and debt financing, if available, may involve restrictive covenants and may result in high interest expense. If we raise additional funds through collaboration and licensing arrangements, it may be necessary to relinquish some rights to our products, processes and technologies or our development projects or to grant licenses on terms that are not favorable to us. We cannot be certain that additional funding will be available on acceptable terms, or at all. If adequate funds are not available from the foregoing sources, we may consider additional strategic financing options, including sales of assets, or we may be required to delay, reduce the scope of, or eliminate one or more of our research or development programs or curtail some of our commercialization efforts of our operations. We may seek to access the public or private equity markets whenever conditions are favorable, even if we do not have an immediate need for additional capital.
We do not own our technologies, they are owned by two entities that are under the control of the Chairman of our Board of Directors.
Our current technologies were acquired pursuant to the terms of two license agreements. As consideration for the two licenses, we agreed to (i) pay a royalty of five percent (5%) of any sales of products using the technology, with no minimum royalty, and (ii) reimburse the licensor for any costs already incurred in pursuing its proprietary rights in the licensed technology and pay any costs incurred for maintaining or obtaining the licensors’ proprietary rights in the licensed technology in the U.S. and in extending the intellectual property to other countries around the world. Licensor shall have sole discretion to select other countries into which exclusive rights in the licensed technology may be pursued, and if we decline to pay those expenses, then licensor may pay said expenses and our licensed rights in those countries will revert to the licensor. The license agreements contain provisions that require us to indemnify the licensors for any claims, including costs of litigation, brought against them related to the licenses, and require us to maintain insurance that may be burdensome. In the event of a breach of our obligations under the license agreements, the licensors are entitled to various damages and remedies, up to and including termination of said license agreements. The licensors are entities under the control of Dr. Mitchell S. Felder, the Chairman of our Board of Directors.
We may fail to deliver commercially successful new products, processes, and treatments.
Our technology is at an early stage of research and development. We do not currently have proof of concept laboratory testing, and no testing arrangements or clinical trials have been formally agreed to. Our products, when and if tested, may not perform as anticipated.
The development of commercially viable new products and processes, as well as the development of additional uses for existing products and processes, is critical to our ability to generate sales and/or sell the rights to manufacture and distribute our products to another firm. Developing new products is a costly, lengthy and uncertain process. A new product candidate can fail at any stage of the process, and one or more late-stage product candidates could fail to receive regulatory approval.
New product candidates may appear promising in development but, after significant investment, fail to reach the market or have only limited commercial success. This, for example, could be as a result of efficacy or safety concerns, inability to obtain necessary regulatory approvals, difficulty or excessive costs to manufacture, erosion of patent term as a result of a lengthy development period, infringement of patents or other intellectual property rights of others or inability to differentiate the product adequately from those with which it competes.
The commercialization of products under development may not be profitable.
In order for the commercialization of our product candidates to be profitable, our products must be cost-effective and economical to manufacture on a commercial scale. Furthermore, if our products and processes do not achieve market acceptance, we may not be profitable. Subject to regulatory approval, we expect to incur significant development, sales, marketing and manufacturing expenses in connection with the commercialization of our new product candidates. Even if we receive additional financing, we may not be able to complete planned clinical trials and the development, manufacturing and marketing of any or all of our product candidates. Our future profitability may depend on many factors, including, but not limited to:
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the terms and timing of any collaborative, licensing and other arrangements that we may establish;
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the costs of filing, prosecuting, defending and enforcing any patent claims and other intellectual property rights;
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the costs of establishing sales, marketing and distribution capabilities; and
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the effect of competing technological and market developments.
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Even if we receive regulatory approval for our product candidates, we may not ever earn significant revenues from such product candidates. With respect to the products and processes in our development pipeline that are being developed by or in close conjunction with third parties, our ability to generate revenues from such products will depend in large part on the efforts of such third parties. To the extent that we are not successful in commercializing our product candidates, our product revenues will suffer, we will incur significant additional losses and the price of our common stock will be negatively affected.
We may engage in strategic transactions that fail to enhance stockholder value.
From time to time, we may consider possible strategic transactions, including the potential acquisitions or licensing of products or technologies or acquisition of companies, and other alternatives with the goal of maximizing stockholder value. We may never complete a strategic transaction, and in the event that we do complete a strategic transaction, implementation of such transactions may impair stockholder value or otherwise adversely affect our business. Any such transaction may require us to incur non-recurring or other charges and may pose significant integration challenges and/or management and business disruptions, any of which could harm our results of operation and business prospects.
Our business is heavily regulated by governmental authorities, and failure to comply with such regulation or changes in such regulations could negatively impact our financial results.
We must comply with a broad range of regulatory controls on the testing, approval, manufacturing and marketing of our products, processes and other treatments, particularly in the United States and countries of the European Union, that affect not only the cost of product development but also the time required to reach the market and the uncertainty of successfully doing so. Health authorities have increased their focus on safety when assessing the benefit risk/balance of drugs in the context of not only initial product approval but also in the context of approval of additional indications and review of information regarding marketed products. Stricter regulatory controls also heighten the risk of changes in product profile or withdrawal by regulators on the basis of post-approval concerns over product safety, which could reduce revenues and can result in product recalls and product liability lawsuits. There is also greater regulatory scrutiny, especially in the United States, on advertising and promotion and in particular on direct-to-consumer advertising.
The regulatory process is uncertain, can take many years, and requires the expenditure of substantial resources. In particular, proposed human pharmaceutical therapeutic product requirements by the FDA in the United States, and similar health authorities in other countries, require substantial time and resources to satisfy. We may never obtain regulatory approval for our products.
We may not be able to gain or sustain market acceptance for our services and products.
Failure to establish a brand and presence in the marketplace on a timely basis could adversely affect our financial condition and results of operations. Moreover, there can be no assurance that we will successfully complete our development and introduction of new products or product enhancements or that any such products or processes will achieve acceptance in the marketplace. We may also fail to develop and deploy new products and product enhancements on a timely basis.
The market for products and services in the pharmaceuticals industry is highly competitive, and we may not be able to compete successfully.
We intend to operate in highly competitive markets. We will likely face competition both from proprietary products of large international manufacturers and producers of generic pharmaceuticals. Most of the competitors in the industry have longer operating histories and significantly greater financial, technical, marketing and other resources than us, and may be able to respond more quickly than we can to new or changing opportunities and customer requirements. Also, many competitors have greater name recognition and more extensive customer bases that they can leverage to gain market share. Such competitors are able to undertake more extensive promotional activities, adopt more aggressive pricing policies and offer more attractive terms to purchasers than we can.
Significant product innovations, technical advances or the intensification of price competition by competitors could adversely affect our operating results. We cannot predict the timing or impact of competitive products or their potential impact on sales of our products.
If any of our major products or processes were to become subject to a problem such as unplanned loss of patent protection, unexpected side effects, regulatory proceedings, publicity affecting doctor or patient confidence or pressure from competitive products and processes, or if a new, more effective treatment should be introduced, the adverse impact on our revenues and operating results could be significant.
We are dependent on the services of key personnel and failure to attract qualified management could limit our growth and negatively impact our results of operations.
We are highly dependent on the principal members of our management and scientific staff and certain key consultants, including our Chief Executive Officer and the Chairman of the Scientific Advisory Board. We will continue to depend on operations management personnel with pharmaceutical and scientific industry experience. At this time, we do not know of the availability of such experienced management personnel or how much it may cost to attract and retain such personnel. The loss of the services of any member of senior management or the inability to hire experienced operations management personnel could have a material adverse effect on our financial condition and results of operations.
If physicians and patients do not accept our current or future products or processes, we may be unable to generate significant additional revenue, if any.
The products and processes that we may develop or acquire in the future, may fail to gain market acceptance among physicians, health care payors, patients and the medical community. Physicians may elect not to recommend these treatments for a variety of reasons, including:
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timing of market introduction of competitive drugs;
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lower demonstrated clinical safety and efficacy compared to other drugs;
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lack of cost-effectiveness;
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lack of availability of reimbursement from managed care plans and other third-party payors;
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lack of convenience or ease of administration;
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prevalence and severity of adverse side effects;
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other potential advantages of alternative treatment methods; and
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ineffective marketing and distribution support.
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If our products and processes fail to achieve market acceptance, we would not be able to generate significant revenue.
We are exposed to the risk of liability claims, for which we may not have adequate insurance.
Since we participate in the pharmaceutical industry, we may be subject to liability claims by employees, customers, end users and third parties. We do not currently have product liability insurance. We intend to have proper insurance in place; however, there can be no assurance that any liability insurance we have or purchase will be adequate to cover claims asserted against us or that we will be able to maintain such insurance in the future. We intend to adopt or have adopted prudent risk management programs to reduce these risks and potential liabilities; however, there can be no assurance that such programs, if and when adopted, will fully protect us. Adverse rulings in any legal matters, proceedings and other matters could have a material adverse effect on our business.
Pre-clinical and clinical trials are conducted during the development of potential products and other treatments to determine their safety and efficacy for use by humans. Notwithstanding these efforts, when our treatments are introduced into the marketplace, unanticipated side effects may become evident. Manufacturing, marketing, selling and testing our products under development or to be acquired or licensed, entails a risk of product liability claims. We could be subject to product liability claims in the event that our products, processes, or products under development fail to perform as intended. Even unsuccessful claims could result in the expenditure of funds in litigation and the diversion of management time and resources, and could damage our reputation and impair the marketability of our products and processes. While we plan to maintain liability insurance for product liability claims, we may not be able to obtain or maintain such insurance at a commercially reasonable cost. If a successful claim were made against us, and we don’t have insurance or the amount of insurance was inadequate to cover the costs of defending against or paying such a claim or the damages payable by us, we would experience a material adverse effect on our business, financial condition and results of operations.
Other companies may claim that we have infringed upon their intellectual property or proprietary rights.
We do not believe that our products or processes violate third-party intellectual property rights; however, we have not had an independent party conduct a study on possible patent infringements. Nevertheless, we cannot guarantee that claims relating to violation of such rights will not be asserted by third parties. If any of our products or processes are found to violate third-party intellectual property rights, we may be required to re-engineer or cause to be re-engineered one or more of those products or processes, or seek to obtain licenses from third parties to continue offering our products or processes without substantial re-engineering, and such efforts may not be successful.
In addition, future patents may be issued to third parties upon which our technology may infringe. We may incur substantial costs in defending against claims under any such patents. Furthermore, parties making such claims may be able to obtain injunctive or other equitable relief, which effectively could block our ability to further develop or commercialize some or all of our products in the United States or abroad, and could result in the award of substantial damages against us. In the event of a claim of infringement, we may be required to obtain one or more licenses from third parties. There can be no assurance that we will be able to obtain such licenses at a reasonable cost, if at all. Defense of any lawsuit or failure to obtain any such license could be costly and have a material adverse effect on our business.
Our success depends on our ability to protect our proprietary technology.
Our success depends, to a significant degree, upon the protection of our proprietary technology, and that of any licensors. Legal fees and other expenses necessary to obtain and maintain appropriate patent protection could be material. Insufficient funding may inhibit our ability to obtain and maintain such protection. Additionally, if we must resort to legal proceedings to enforce our intellectual property rights, the proceedings could be burdensome and expensive, and could involve a high degree of risk to our proprietary rights if we are unsuccessful in, or cannot afford to pursue, such proceedings.
Our licensor has filed provisional patent applications covering technologies pertaining to the treatments of Multiple Sclerosis, Blood Sepsis, and Cancer. We anticipate that other technologies that derive from these patents will also belong to us and are covered by the license agreements. Because the patent positions of pharmaceutical and biotechnology companies are highly uncertain and involve complex legal and factual questions, the patents may not be granted, and any future patents owned and licensed by us may not prevent other companies from developing competing products or ensure that others will not be issued patents that may prevent the sale of our products or require licensing and the payment of significant fees or royalties. Furthermore, to the extent that: (i) any of our future products or methods are not patentable; (ii) such products or methods infringe upon the patents of third parties; or (iii) our patents or future patents fail to give us an exclusive position in the subject matter to which such patents relate, we will be adversely affected. We may be unable to avoid infringement of third-party patents and may have to obtain a license, or defend an infringement action and challenge the validity of such patents in court. A license may be unavailable on terms and conditions acceptable to us, if at all. Patent litigation is costly and time consuming, and we may be unable to prevail in any such patent litigation or devote sufficient resources to even pursue such litigation. If we do not obtain a license under such patents, are found liable for infringement and are not able to have such patents declared invalid, we may be liable for significant monetary damages, encounter significant delays in bringing products to market or may be precluded from participating in the manufacture, use or sale of products or methods of treatment requiring such licenses.
We may also rely on trademarks, trade secrets and contract law to protect certain of our proprietary technology. There can be no assurance that any trademarks will be approved, that such contract will not be breached, or that if breached, will have adequate remedies. Furthermore, there can be no assurance that any of our trade secrets will not become known or independently discovered by third parties.
Additionally, we may, from time to time, support and collaborate in research conducted by universities and governmental research organizations. There can be no assurance that we will have or be able to acquire exclusive rights to the inventions or technical information derived from such collaborations, or that disputes will not arise with respect to rights in derivative or related research programs conducted by us or such collaborators.
Our future growth may be inhibited by the failure to implement new technologies.
Our future growth is partially tied to our ability to improve our knowledge and implementation of pharmaceutical technologies. The inability to successfully implement commercially viable pharmaceutical technologies in response to market conditions in a manner that is responsive to our customers’ requirements could have a material adverse effect on our business.
Risks Related To Our Common Stock
There is no public trading market for our common stock, which may impede your ability to sell our shares
.
Currently, there is no trading market for our common stock, and there can be no assurance that such a market will commence in the future. There can be no assurance that an investor will be able to liquidate his or her investment without considerable delay, if at all. If a trading market does commence, the price may be highly volatile. Factors discussed herein may have a significant impact on the market price of our shares. Moreover, due to the relatively low price of our securities, many brokerage firms may not effect transactions in our common stock if a market is established. Rules enacted by the SEC increase the likelihood that most brokerage firms will not participate in a potential future market for our common stock. Those rules require, as a condition to brokers effecting transactions in certain defined securities (unless such transaction is subject to one or more exemptions), that the broker obtain from its customer or client a written representation concerning the customer’s financial situation, investment experience and investment objectives. Compliance with these procedures tends to discourage most brokerage firms from participating in the market for certain low-priced securities.
We intend to apply to list our common stock for trading on the “Over-the-Counter Bulletin Board,” which may make it more difficult for investors to resell their shares due to suitability requirements.
We intend to have a market maker apply to list our common stock for trading on the Over the Counter Bulletin Board (OTCBB). Broker-dealers often decline to trade in OTCBB stocks given the market for such securities are often limited, the stocks are more volatile, and the risk to investors is greater. These factors may reduce the potential market for our common stock by reducing the number of potential investors. This may make it more difficult for investors in our common stock to sell shares to third parties or to otherwise dispose of their shares. This could cause our stock price to decline.
If we are unable to pay the costs associated with being a public, reporting company, we may not be able to commence and/or continue trading on the Over the Counter Bulletin Board and/or we may be forced to discontinue operations.
We intend to apply to list our common stock for trading on the OTCBB. We expect to have significant costs associated with being a public, reporting company, which may raise substantial doubt about our ability to commence and/or continue trading on the OTCBB and/or continue as a going concern. Our ability to commence and/or continue trading on the OTCBB and/or continue as a going concern will depend on positive cash flow, if any, from future operations and on our ability to raise additional funds through equity or debt financing. If we are unable to achieve the necessary product sales or raise or obtain needed funding to cover the costs of operating as a public, reporting company, our common stock may be deleted from the OTCBB and/or we may be forced to discontinue operations.
Our principal stockholders have the ability to exert significant control in matters requiring stockholder approval and could delay, deter, or prevent a change in control of our company.
William A. Hartman and Dr. Mitchell S. Felder collectively own a majority of our outstanding common stock, and through the exercise of warrants could acquire another 34,000,000 shares of our common stock and 2,000,000 shares of our Series A Convertible Preferred Stock. The shares of our preferred stock have 100 votes per share, giving these two shareholders the vast majority of our current voting securities. As a result, they have the ability to influence matters affecting our shareholders, including the election of our directors, the acquisition or disposition of our assets, and the future issuance of our shares. Because they control such shares, investors may find it difficult to replace our management if they disagree with the way our business is being operated. Because the influence by these shareholders could result in management making decisions that are in the best interest of those shareholders and not in the best interest of the investors, you may lose some or all of the value of your investment in our common stock. Investors who purchase our common stock should be willing to entrust all aspects of operational control to our current management team.
We do not intend to pay dividends in the foreseeable future.
We do not intend to pay any dividends in the foreseeable future. We do not plan on making any cash distributions in the manner of a dividend or otherwise. Our Board presently intends to follow a policy of retaining earnings, if any.
We have the right to issue additional common stock and preferred stock without consent of stockholders. This would have the effect of diluting investors’ ownership and could decrease the value of their investment.
We have additional authorized but unissued shares of our common stock that may be issued by us for any purpose without the consent or vote of our stockholders that would dilute stockholders’ percentage ownership of our company.
In addition, our certificate of incorporation authorizes the issuance of shares of preferred stock, the rights, preferences, designations and limitations of which may be set by the Board of Directors. Our certificate of incorporation has authorized issuance of up to 10,000,000 shares of preferred stock in the discretion of our Board. The shares of authorized but undesignated preferred stock may be issued upon filing of an amended certificate of incorporation and the payment of required fees; no further stockholder action is required. If issued, the rights, preferences, designations and limitations of such preferred stock would be set by our Board and could operate to the disadvantage of the outstanding common stock. Such terms could include, among others, preferences as to dividends and distributions on liquidation.
Our common stock is governed under The Securities Enforcement and Penny Stock Reform Act of 1990.
The Securities Enforcement and Penny Stock Reform Act of 1990 requires additional disclosure relating to the market for penny stocks in connection with trades in any stock defined as a penny stock. The Commission has adopted regulations that generally define a penny stock to be any equity security that has a market price of less than $5.00 per share, subject to certain exceptions. Such exceptions include any equity security listed on NASDAQ and any equity security issued by an issuer that has (i) net tangible assets of at least $2,000,000, if such issuer has been in continuous operation for three years, (ii) net tangible assets of at least $5,000,000, if such issuer has been in continuous operation for less than three years, or (iii) average annual revenue of at least $6,000,000, if such issuer has been in continuous operation for less than three years. Unless an exception is available, the regulations require the delivery, prior to any transaction involving a penny stock, of a disclosure schedule explaining the penny stock market and the risks associated therewith.
The forward looking statements contained in this Prospectus may prove incorrect.
This Prospectus contains certain forward-looking statements, including among others: (i) anticipated trends in our financial condition and results of operations; (ii) our business strategy for expanding distribution; and (iii) our ability to distinguish ourselves from our current and future competitors. These forward-looking statements are based largely on our current expectations and are subject to a number of risks and uncertainties. Actual results could differ materially from these forward-looking statements. In addition to the other risks described elsewhere in this “Risk Factors” discussion, important factors to consider in evaluating such forward-looking statements include: (i) changes to external competitive market factors or in our internal budgeting process which might impact trends in our results of operations; (ii) anticipated working capital or other cash requirements; (iii) changes in our business strategy or an inability to execute our strategy due to unanticipated changes in the digital display industry; and (iv) various competitive factors that may prevent us from competing successfully in the marketplace. In light of these risks and uncertainties, many of which are described in greater detail elsewhere in this “Risk Factors” discussion, there can be no assurance that the events predicted in forward-looking statements contained in this Prospectus will, in fact, transpire.
SPECIAL NOTE ABOUT FORWARD-LOOKING STATEMENTS
We have made forward-looking statements in this prospectus, including the sections entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Business,” that are based on our management’s beliefs and assumptions and on information currently available to our management. Forward-looking statements include the information concerning our possible or assumed future results of operations, business strategies, financing plans, competitive position, industry environment, potential growth opportunities, the effects of future regulation, and the effects of competition. Forward-looking statements include all statements that are not historical facts and can be identified by the use of forward-looking terminology such as the words “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate” or similar expressions. These statements are only predictions and involve known and unknown risks and uncertainties, including the risks outlined under “Risk Factors” and elsewhere in this prospectus.
Although we believe that the expectations reflected in our forward-looking statements are reasonable, we cannot guarantee future results, events, levels of activity, performance or achievement. We are not under any duty to update any of the forward-looking statements after the date of this prospectus to conform these statements to actual results, unless required by law.
USE OF PROCEEDS
This prospectus relates to shares of our common stock that may be offered and sold from time to time by the selling stockholders. We will not receive any proceeds from the sale of shares of common stock by the selling stockholders in this offering. We will, however, receive $0.10 per share for each share of stock acquired by a selling shareholder pursuant to the exercise of warrants. The proceeds from the exercise of warrants will be used for general working capital purposes.
DETERMINATION OF OFFERING PRICE
We are registering up to 951,200 shares for resale by existing holders of our common stock. There is no established public market for the shares we are registering. Our management has established the price of $0.25 per share based upon the price at which recent transactions took place, their estimates of the market value of Premier Biomedical, Inc., and the price at which potential investors might be willing to purchase the shares offered. Most of the selling shareholders in this offering paid $0.10 per share in a private placement that closed in March 2011, although some of them paid $0.25 per shares in a private placement that closed in June 2011, and thus will not realize a profit unless and until there is an active trading market at a higher price. Until such time as a trading market does develop, because of the uncertainty of our ability to continue as a going concern, our management does not believe that the price of $0.25 per share has changed.
The following table provides information with respect to shares offered by the selling stockholders:
Selling stockholder
|
|
Shares
for sale
|
|
|
Shares
Underlying
Warrants
|
|
|
Shares before
offering
(1)
|
|
|
Percent
before
offering (1)
|
|
|
Shares
after
offering
|
|
|
Percent
after
offering (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Michael D. Frydt
|
|
|
100,000
|
|
|
|
-
|
|
|
|
100,000
|
|
|
|
0.87
|
%
|
|
|
-
|
|
|
|
-
|
|
Peter G. Stavropoulos & Marie A. Stavropoulos
|
|
|
20,000
|
|
|
|
20,000
|
|
|
|
40,000
|
|
|
|
0.35
|
%
|
|
|
-
|
|
|
|
-
|
|
Richard Pappas & Joanna Pappas
|
|
|
20,000
|
|
|
|
20,000
|
|
|
|
40,000
|
|
|
|
0.35
|
%
|
|
|
-
|
|
|
|
-
|
|
Russell L. Foster
|
|
|
30,000
|
|
|
|
10,000
|
|
|
|
40,000
|
|
|
|
0.35
|
%
|
|
|
-
|
|
|
|
-
|
|
Alexandria Najarian
|
|
|
20,000
|
|
|
|
10,000
|
|
|
|
30,000
|
|
|
|
0.26
|
%
|
|
|
-
|
|
|
|
-
|
|
Aram Najarian
|
|
|
20,000
|
|
|
|
10,000
|
|
|
|
30,000
|
|
|
|
0.26
|
%
|
|
|
-
|
|
|
|
-
|
|
Carolyn S. Steglich
|
|
|
20,000
|
|
|
|
10,000
|
|
|
|
30,000
|
|
|
|
0.26
|
%
|
|
|
-
|
|
|
|
-
|
|
Richard Najarian
|
|
|
20,000
|
|
|
|
10,000
|
|
|
|
30,000
|
|
|
|
0.26
|
%
|
|
|
-
|
|
|
|
-
|
|
Stephanie Najarian
|
|
|
20,000
|
|
|
|
10,000
|
|
|
|
30,000
|
|
|
|
0.26
|
%
|
|
|
-
|
|
|
|
-
|
|
John S. Borza
|
|
|
14,000
|
|
|
|
10,000
|
|
|
|
24,000
|
|
|
|
0.21
|
%
|
|
|
-
|
|
|
|
-
|
|
John C. Klemes
|
|
|
12,000
|
|
|
|
10,000
|
|
|
|
22,000
|
|
|
|
0.19
|
%
|
|
|
-
|
|
|
|
-
|
|
Adam E. Wade
|
|
|
10,000
|
|
|
|
10,000
|
|
|
|
20,000
|
|
|
|
0.17
|
%
|
|
|
-
|
|
|
|
-
|
|
Angela K. Lower-Lusk
|
|
|
10,000
|
|
|
|
10,000
|
|
|
|
20,000
|
|
|
|
0.17
|
%
|
|
|
-
|
|
|
|
-
|
|
Antonette Psaila
|
|
|
10,000
|
|
|
|
10,000
|
|
|
|
20,000
|
|
|
|
0.17
|
%
|
|
|
-
|
|
|
|
-
|
|
Aram H. Najarian
|
|
|
10,000
|
|
|
|
10,000
|
|
|
|
20,000
|
|
|
|
0.17
|
%
|
|
|
-
|
|
|
|
-
|
|
Barbara R. Martin
|
|
|
10,000
|
|
|
|
10,000
|
|
|
|
20,000
|
|
|
|
0.17
|
%
|
|
|
-
|
|
|
|
-
|
|
Barrett Goulding
|
|
|
10,000
|
|
|
|
10,000
|
|
|
|
20,000
|
|
|
|
0.17
|
%
|
|
|
-
|
|
|
|
-
|
|
Blane Goulding
|
|
|
10,000
|
|
|
|
10,000
|
|
|
|
20,000
|
|
|
|
0.17
|
%
|
|
|
-
|
|
|
|
-
|
|
Bonnie S Ross
|
|
|
10,000
|
|
|
|
10,000
|
|
|
|
20,000
|
|
|
|
0.17
|
%
|
|
|
-
|
|
|
|
-
|
|
Brandon Goulding
|
|
|
10,000
|
|
|
|
10,000
|
|
|
|
20,000
|
|
|
|
0.17
|
%
|
|
|
-
|
|
|
|
-
|
|
Brenton Goulding
|
|
|
10,000
|
|
|
|
10,000
|
|
|
|
20,000
|
|
|
|
0.17
|
%
|
|
|
-
|
|
|
|
-
|
|
Bryce Goulding
|
|
|
10,000
|
|
|
|
10,000
|
|
|
|
20,000
|
|
|
|
0.17
|
%
|
|
|
-
|
|
|
|
-
|
|
Clifford W. Eshelman
|
|
|
10,000
|
|
|
|
10,000
|
|
|
|
20,000
|
|
|
|
0.17
|
%
|
|
|
-
|
|
|
|
-
|
|
Cynthia V. Wade & Edward L. Wade Jr.
|
|
|
10,000
|
|
|
|
10,000
|
|
|
|
20,000
|
|
|
|
0.17
|
%
|
|
|
-
|
|
|
|
-
|
|
Daniel E. Ford
|
|
|
10,000
|
|
|
|
10,000
|
|
|
|
20,000
|
|
|
|
0.17
|
%
|
|
|
-
|
|
|
|
-
|
|
Deborah J. Borza
|
|
|
10,000
|
|
|
|
10,000
|
|
|
|
20,000
|
|
|
|
0.17
|
%
|
|
|
-
|
|
|
|
-
|
|
Donna Ford
|
|
|
10,000
|
|
|
|
10,000
|
|
|
|
20,000
|
|
|
|
0.17
|
%
|
|
|
-
|
|
|
|
-
|
|
Douglas R Ford
|
|
|
10,000
|
|
|
|
10,000
|
|
|
|
20,000
|
|
|
|
0.17
|
%
|
|
|
-
|
|
|
|
-
|
|
DSG Enterprises, LLC (2)
|
|
|
10,000
|
|
|
|
10,000
|
|
|
|
20,000
|
|
|
|
0.17
|
%
|
|
|
-
|
|
|
|
-
|
|
Dwain E. Ford
|
|
|
10,000
|
|
|
|
10,000
|
|
|
|
20,000
|
|
|
|
0.17
|
%
|
|
|
-
|
|
|
|
-
|
|
Expanse Enterprises, LLC (3)
|
|
|
10,000
|
|
|
|
10,000
|
|
|
|
20,000
|
|
|
|
0.17
|
%
|
|
|
-
|
|
|
|
-
|
|
Gary S. Pruitt
|
|
|
10,000
|
|
|
|
10,000
|
|
|
|
20,000
|
|
|
|
0.17
|
%
|
|
|
-
|
|
|
|
-
|
|
Georgeann Holland
|
|
|
10,000
|
|
|
|
10,000
|
|
|
|
20,000
|
|
|
|
0.17
|
%
|
|
|
-
|
|
|
|
-
|
|
Gerlinde Frazl-Mayer
|
|
|
10,000
|
|
|
|
10,000
|
|
|
|
20,000
|
|
|
|
0.17
|
%
|
|
|
-
|
|
|
|
-
|
|
James M. Lusk
|
|
|
10,000
|
|
|
|
10,000
|
|
|
|
20,000
|
|
|
|
0.17
|
%
|
|
|
-
|
|
|
|
-
|
|
James W. Lusk
|
|
|
10,000
|
|
|
|
10,000
|
|
|
|
20,000
|
|
|
|
0.17
|
%
|
|
|
-
|
|
|
|
-
|
|
Jay Rosen
|
|
|
10,000
|
|
|
|
10,000
|
|
|
|
20,000
|
|
|
|
0.17
|
%
|
|
|
-
|
|
|
|
-
|
|
Joseph Meyers
|
|
|
10,000
|
|
|
|
10,000
|
|
|
|
20,000
|
|
|
|
0.17
|
%
|
|
|
-
|
|
|
|
-
|
|
Justin & Stephanie Weathers
|
|
|
10,000
|
|
|
|
10,000
|
|
|
|
20,000
|
|
|
|
0.17
|
%
|
|
|
-
|
|
|
|
-
|
|
Karyn Pardee
|
|
|
10,000
|
|
|
|
10,000
|
|
|
|
20,000
|
|
|
|
0.17
|
%
|
|
|
-
|
|
|
|
-
|
|
Lisa M. Klemes
|
|
|
10,000
|
|
|
|
10,000
|
|
|
|
20,000
|
|
|
|
0.17
|
%
|
|
|
-
|
|
|
|
-
|
|
Marilyn P. Johnson
|
|
|
10,000
|
|
|
|
10,000
|
|
|
|
20,000
|
|
|
|
0.17
|
%
|
|
|
-
|
|
|
|
-
|
|
Martin D Ross
|
|
|
10,000
|
|
|
|
10,000
|
|
|
|
20,000
|
|
|
|
0.17
|
%
|
|
|
-
|
|
|
|
-
|
|
Martin David Holland
|
|
|
10,000
|
|
|
|
10,000
|
|
|
|
20,000
|
|
|
|
0.17
|
%
|
|
|
-
|
|
|
|
-
|
|
Mary K. Klemes
|
|
|
10,000
|
|
|
|
10,000
|
|
|
|
20,000
|
|
|
|
0.17
|
%
|
|
|
-
|
|
|
|
-
|
|
Matthew P. Wade
|
|
|
10,000
|
|
|
|
10,000
|
|
|
|
20,000
|
|
|
|
0.17
|
%
|
|
|
-
|
|
|
|
-
|
|
Michael D. Fryt
|
|
|
10,000
|
|
|
|
10,000
|
|
|
|
20,000
|
|
|
|
0.17
|
%
|
|
|
-
|
|
|
|
-
|
|
Michael J. Hoehn
|
|
|
10,000
|
|
|
|
10,000
|
|
|
|
20,000
|
|
|
|
0.17
|
%
|
|
|
-
|
|
|
|
-
|
|
Patricia Goulding
|
|
|
10,000
|
|
|
|
10,000
|
|
|
|
20,000
|
|
|
|
0.17
|
%
|
|
|
-
|
|
|
|
-
|
|
Selling stockholder
|
|
Shares
for sale
|
|
|
Shares
Underlying
Warrants
|
|
|
Shares before
offering
(1)
|
|
|
Percent
before
offering (1)
|
|
|
Shares
after
offering
|
|
|
Percent
after
offering (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Patrick A. Foster
|
|
|
10,000
|
|
|
|
10,000
|
|
|
|
20,000
|
|
|
|
0.17
|
%
|
|
|
-
|
|
|
|
-
|
|
Paul A. Johnson
|
|
|
10,000
|
|
|
|
10,000
|
|
|
|
20,000
|
|
|
|
0.17
|
%
|
|
|
-
|
|
|
|
-
|
|
Randall Goulding
|
|
|
10,000
|
|
|
|
10,000
|
|
|
|
20,000
|
|
|
|
0.17
|
%
|
|
|
-
|
|
|
|
-
|
|
Richard Goulding, MD
|
|
|
10,000
|
|
|
|
10,000
|
|
|
|
20,000
|
|
|
|
0.17
|
%
|
|
|
-
|
|
|
|
-
|
|
Robert J. Swierkos
|
|
|
10,000
|
|
|
|
10,000
|
|
|
|
20,000
|
|
|
|
0.17
|
%
|
|
|
-
|
|
|
|
-
|
|
Robyn Goulding
|
|
|
10,000
|
|
|
|
10,000
|
|
|
|
20,000
|
|
|
|
0.17
|
%
|
|
|
-
|
|
|
|
-
|
|
Ronald J. Martin
|
|
|
10,000
|
|
|
|
10,000
|
|
|
|
20,000
|
|
|
|
0.17
|
%
|
|
|
-
|
|
|
|
-
|
|
Russell T. Foster
|
|
|
10,000
|
|
|
|
10,000
|
|
|
|
20,000
|
|
|
|
0.17
|
%
|
|
|
-
|
|
|
|
-
|
|
Ryan Goulding
|
|
|
10,000
|
|
|
|
10,000
|
|
|
|
20,000
|
|
|
|
0.17
|
%
|
|
|
-
|
|
|
|
-
|
|
Scott L. Foster
|
|
|
10,000
|
|
|
|
10,000
|
|
|
|
20,000
|
|
|
|
0.17
|
%
|
|
|
-
|
|
|
|
-
|
|
Seta Najarian
|
|
|
10,000
|
|
|
|
10,000
|
|
|
|
20,000
|
|
|
|
0.17
|
%
|
|
|
-
|
|
|
|
-
|
|
Steven B Nagler
|
|
|
10,000
|
|
|
|
10,000
|
|
|
|
20,000
|
|
|
|
0.17
|
%
|
|
|
-
|
|
|
|
-
|
|
Susan V. Vergas
|
|
|
10,000
|
|
|
|
10,000
|
|
|
|
20,000
|
|
|
|
0.17
|
%
|
|
|
-
|
|
|
|
-
|
|
Whitson Trust
|
|
|
10,000
|
|
|
|
10,000
|
|
|
|
20,000
|
|
|
|
0.17
|
%
|
|
|
-
|
|
|
|
-
|
|
William R. Murphy
|
|
|
10,000
|
|
|
|
10,000
|
|
|
|
20,000
|
|
|
|
0.17
|
%
|
|
|
-
|
|
|
|
-
|
|
Wolfgang Vierling
|
|
|
10,000
|
|
|
|
10,000
|
|
|
|
20,000
|
|
|
|
0.17
|
%
|
|
|
-
|
|
|
|
-
|
|
Arlene M. Curns
|
|
|
6,000
|
|
|
|
6,000
|
|
|
|
12,000
|
|
|
|
0.10
|
%
|
|
|
-
|
|
|
|
-
|
|
Jeanette G. Kelly
|
|
|
12,000
|
|
|
|
-
|
|
|
|
12,000
|
|
|
|
0.10
|
%
|
|
|
-
|
|
|
|
-
|
|
Naomi Nitz
|
|
|
12,000
|
|
|
|
-
|
|
|
|
12,000
|
|
|
|
0.10
|
%
|
|
|
-
|
|
|
|
-
|
|
Frank Keating
|
|
|
5,000
|
|
|
|
5,000
|
|
|
|
10,000
|
|
|
|
0.09
|
%
|
|
|
-
|
|
|
|
-
|
|
Hertha Carl
|
|
|
5,000
|
|
|
|
5,000
|
|
|
|
10,000
|
|
|
|
0.09
|
%
|
|
|
-
|
|
|
|
-
|
|
Horst Carl
|
|
|
5,000
|
|
|
|
5,000
|
|
|
|
10,000
|
|
|
|
0.09
|
%
|
|
|
-
|
|
|
|
-
|
|
James W. Keating
|
|
|
5,000
|
|
|
|
5,000
|
|
|
|
10,000
|
|
|
|
0.09
|
%
|
|
|
-
|
|
|
|
-
|
|
Kathy Byron
|
|
|
5,000
|
|
|
|
5,000
|
|
|
|
10,000
|
|
|
|
0.09
|
%
|
|
|
-
|
|
|
|
-
|
|
Maureen Keating
|
|
|
5,000
|
|
|
|
5,000
|
|
|
|
10,000
|
|
|
|
0.09
|
%
|
|
|
-
|
|
|
|
-
|
|
Monique Polan
|
|
|
5,000
|
|
|
|
5,000
|
|
|
|
10,000
|
|
|
|
0.09
|
%
|
|
|
-
|
|
|
|
-
|
|
Robert W. List
|
|
|
5,000
|
|
|
|
5,000
|
|
|
|
10,000
|
|
|
|
0.09
|
%
|
|
|
-
|
|
|
|
-
|
|
Barbara Blakney
|
|
|
3,000
|
|
|
|
3,000
|
|
|
|
6,000
|
|
|
|
0.05
|
%
|
|
|
-
|
|
|
|
-
|
|
Edward O. Reeves
|
|
|
6,000
|
|
|
|
-
|
|
|
|
6,000
|
|
|
|
0.05
|
%
|
|
|
-
|
|
|
|
-
|
|
Michael J. Lusk
|
|
|
3,000
|
|
|
|
3,000
|
|
|
|
6,000
|
|
|
|
0.05
|
%
|
|
|
-
|
|
|
|
-
|
|
Dennis Spencer
|
|
|
4,000
|
|
|
|
-
|
|
|
|
4,000
|
|
|
|
0.03
|
%
|
|
|
-
|
|
|
|
-
|
|
Johnny F. Kelly
|
|
|
4,000
|
|
|
|
-
|
|
|
|
4,000
|
|
|
|
0.03
|
%
|
|
|
-
|
|
|
|
-
|
|
Kelly G. Kelly
|
|
|
4,000
|
|
|
|
-
|
|
|
|
4,000
|
|
|
|
0.03
|
%
|
|
|
-
|
|
|
|
-
|
|
Lindsey Marie Reeves
|
|
|
4,000
|
|
|
|
-
|
|
|
|
4,000
|
|
|
|
0.03
|
%
|
|
|
-
|
|
|
|
-
|
|
Roy L. Peters
|
|
|
4,000
|
|
|
|
-
|
|
|
|
4,000
|
|
|
|
0.03
|
%
|
|
|
-
|
|
|
|
-
|
|
Allen M. Borza
|
|
|
1,250
|
|
|
|
1,250
|
|
|
|
2,500
|
|
|
|
0.02
|
%
|
|
|
-
|
|
|
|
-
|
|
Carissa L. Hercula
|
|
|
1,250
|
|
|
|
1,250
|
|
|
|
2,500
|
|
|
|
0.02
|
%
|
|
|
-
|
|
|
|
-
|
|
Michelle A. Borza
|
|
|
1,250
|
|
|
|
1,250
|
|
|
|
2,500
|
|
|
|
0.02
|
%
|
|
|
-
|
|
|
|
-
|
|
Robert J. Borza
|
|
|
1,250
|
|
|
|
1,250
|
|
|
|
2,500
|
|
|
|
0.02
|
%
|
|
|
-
|
|
|
|
-
|
|
Allen Snelling
|
|
|
1,200
|
|
|
|
1,200
|
|
|
|
2,400
|
|
|
|
0.02
|
%
|
|
|
-
|
|
|
|
-
|
|
Carol & Jim Lusk
|
|
|
1,000
|
|
|
|
1,000
|
|
|
|
2,000
|
|
|
|
0.02
|
%
|
|
|
-
|
|
|
|
-
|
|
Gerald & Clariesse Curns
|
|
|
1,000
|
|
|
|
1,000
|
|
|
|
2,000
|
|
|
|
0.02
|
%
|
|
|
-
|
|
|
|
-
|
|
Gregorios A. & Paraskevi S. Morakeas
|
|
|
2,000
|
|
|
|
-
|
|
|
|
2,000
|
|
|
|
0.02
|
%
|
|
|
-
|
|
|
|
-
|
|
Kerri L. Dunton
|
|
|
1,000
|
|
|
|
1,000
|
|
|
|
2,000
|
|
|
|
0.02
|
%
|
|
|
-
|
|
|
|
-
|
|
Michelle A. Coaster
|
|
|
1,000
|
|
|
|
1,000
|
|
|
|
2,000
|
|
|
|
0.02
|
%
|
|
|
-
|
|
|
|
-
|
|
Ronald & Paula Curns
|
|
|
1,000
|
|
|
|
1,000
|
|
|
|
2,000
|
|
|
|
0.02
|
%
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
951,200
|
|
|
|
723,200
|
|
|
|
1,674,400
|
|
|
|
14.61
|
%
|
|
|
-
|
|
|
|
-
|
|
|
(1)
|
Based on 11,451,200 shares outstanding. Shares of common stock underlying the exercise of warrants included herein, subject to options or warrants currently exercisable, or exercisable within 60 days, are deemed outstanding for purposes of computing the percentage of the person holding such options or warrants, but are not deemed outstanding for purposes of computing the percentage of any other person. Each warrant held by the Selling Stockholders will be exercisable only if and to the extent that the original purchaser is still the owner of the corresponding share of common stock on the date which is one (1) year after we are publicly traded, and shall expire one (1) year after that. The exercise price is $0.10 per share.
|
|
(2)
|
The individual with dispositive and voting control over the shares held by DSG Enterprises, LLC is David Goulding, its President.
|
|
(3)
|
The individual with dispositive and voting control over the shares held by Expanse Enterprises, LLC is Ryan Goulding, its Managing Member.
|
PLAN OF DISTRIBUTION
We anticipate that a market maker will apply to have our common stock traded on the over-the-counter bulletin board at some point in the future, but there is no guarantee this will occur. If successful, the selling stockholders will be able to sell their shares referenced under “Selling Security Holders” from time to time on the over-the-counter bulletin board in privately negotiated sales, or on other markets, at prevailing market rates. If our common stock is not listed on the over-the-counter bulletin board, the selling stockholders may sell their shares in privately negotiated transactions. Any securities sold in brokerage transactions will involve customary brokers’ commissions.
We will pay all expenses in connection with the registration and sale of the common stock by the selling security holders, who may be deemed to be underwriters in connection with their offering of shares. The estimated expenses of issuance and distribution are set forth below:
Registration Fees
|
Approximately
|
|
$
|
100
|
|
Transfer Agent Fees
|
Approximately
|
|
|
500
|
|
Costs of Printing and Engraving
|
Approximately
|
|
|
500
|
|
Legal Fees
|
Approximately
|
|
|
30,000
|
|
Accounting and Audit Fees
|
Approximately
|
|
|
7,500
|
|
Total
|
|
|
$
|
38,600
|
|
Under the securities laws of certain states, the shares of common stock may be sold in such states only through registered or licensed brokers or dealers. The selling stockholders are advised to ensure that any underwriters, brokers, dealers or agents effecting transactions on behalf of the selling stockholders are registered to sell securities in all fifty states. In addition, in certain states the shares of common stock may not be sold unless the shares have been registered or qualified for sale in such state or an exemption from registration or qualification is available and we have complied with them. The selling stockholders and any brokers, dealers or agents that participate in the distribution of common stock may be considered underwriters, and any profit on the sale of common stock by them and any discounts, concessions or commissions received by those underwriters, brokers, dealers or agents may be considered underwriting discounts and commissions under the Securities Act of 1933.
In accordance with Regulation M under the Securities Exchange Act of 1934, neither we nor the selling stockholders may bid for, purchase or attempt to induce any person to bid for or purchase, any of our common stock while we or they are selling stock in this offering. Neither we nor any of the selling stockholders intends to engage in any passive market making or undertake any stabilizing activity for our common stock. None of the selling stockholders will engage in any short selling of our securities. We have been advised that under the rules and regulations of the FINRA, any broker-dealer may not receive discounts, concessions, or commissions in excess of 8% in connection with the sale of any securities registered hereunder.
DESCRIPTION OF SECURITIES
Our authorized capital stock consists of 300,000,000 shares of common stock, par value $0.001, and 10,000,000 shares of preferred stock, par value $0.001. As of the date of this Registration Statement, there are 11,451,200 shares of our common stock issued and outstanding, and no shares of preferred stock issued or outstanding.
Common Stock
. Each shareholder of our common stock is entitled to a pro rata share of cash distributions made to shareholders, including dividend payments. The holders of our common stock are entitled to one vote for each share of record on all matters to be voted on by shareholders. There is no cumulative voting with respect to the election of our directors or any other matter. Therefore, the holders of more than 50% of the shares voted for the election of those directors can elect all of the directors. The holders of our common stock are entitled to receive dividends when and if declared by our Board of Directors from funds legally available therefore. Cash dividends are at the sole discretion of our Board of Directors. In the event of our liquidation, dissolution or winding up, the holders of common stock are entitled to share ratably in all assets remaining available for distribution to them after payment of our liabilities and after provision has been made for each class of stock, if any, having any preference in relation to our common stock. Holders of shares of our common stock have no conversion, preemptive or other subscription rights, and there are no redemption provisions applicable to our common stock.
Preferred Stock
. We are authorized to issue 10,000,000 shares of preferred stock, par value $0.001 per share, of which 2,000,000 shares of Series A Convertible Preferred stock have been authorized (but are not issued). The Preferred Stock is convertible, at the option of the holder, into one share of common stock for each share of Preferred Stock converted. The holders of our Preferred Stock also have 100 votes per share of Preferred Stock that they hold. It also contains protective provisions as follows:
The Company may not take any of the following actions without the approval of a majority of the holders of the outstanding Series A Convertible Preferred Stock: (i) effect a sale of all or substantially all of the Company’s assets or which results in the holders of the Company’s capital stock prior to the transaction owning less than fifty percent (50%) of the voting power of the Company’s capital stock after the transaction, (ii) alter or change the rights, preferences, or privileges of the Series A Convertible Preferred Stock, (iii) increase or decrease the number of authorized shares of Series A Convertible Preferred Stock, (iv) authorize the issuance of securities having a preference over or on par with the Series A Convertible Preferred Stock, or (v) effectuate a forward or reverse stock split or dividend of the Company’s common stock.
Dividend Policy
. We have not declared or paid a cash dividend on our capital stock in our last two fiscal years and we do not expect to pay cash dividends on our common stock in the foreseeable future. We currently intend to retain our earnings, if any, for use in our business. Any dividends declared in the future will be at the discretion of our Board of Directors and subject to any restrictions that may be imposed by our lenders.
Options and Warrants
. There are outstanding warrants to acquire a total of 36,500,000 shares of our common stock at $0.00001 per share. Seventeen million (17,000,000) warrants are held by each of William A. Hartman and Dr. Mitchell S. Felder, and 2,500,000 warrants are held by our legal counsel.
There are outstanding warrants to acquire 2,000,000 shares of our Series A Convertible Preferred Stock. These warrants are held equally by William A. Hartman and Dr. Mitchell S. Felder. The holders of Series A Convertible Preferred Stock, as a group, having voting control of the Company.
There are outstanding warrants to acquire 723,200 shares of our common stock. The warrants are only exercisable if and to the extent that the original purchaser is still the owner of the corresponding share of common stock with which it was purchased on the date which is one (1) year after we are publicly traded, and shall expire one (1) year after that. The exercise price is $0.10 per share. If a purchaser has sold part, but not all, of the shares of common stock acquired simultaneously, then the warrants will be exercisable on a pro-rata basis based on the percentage of shares remaining.
Other than as set forth above, as of the date of this prospectus, we do not have any outstanding options, warrants, or other convertible securities.
INTEREST OF NAMED EXPERTS AND COUNSEL
The Lebrecht Group, APLC serves as our legal counsel in connection with this offering. The Lebrecht Group owns warrants to acquire 2,500,000 shares of our common stock at an exercise price of $0.00001 per share.
DESCRIPTION OF BUSINESS
License Agreements
On May 12, 2010, we entered into two separate License Agreements. One License Agreement was entered into with Altman Enterprises, LLC, wherein we obtained certain exclusive rights in (i) proprietary technology that is the subject of one pending PCT patent application relating to the treatment of auto-immune diseases, and (ii) the “Feldetrex” trademark. The other License Agreement was entered into with Marv Enterprises, LLC, wherein we obtained certain exclusive rights in proprietary technology that is the subject of two PCT patent applications relating to the treatment of blood borne carcinomas and sequential extracorporeal treatment of blood. We started developing a business around these two licenses immediately. The Licensors are entities under the control of Dr. Mitchell S. Felder, the Chairman of our Board of Directors.
Overview
We are a research-based company that discovers and develops medical treatments for humans, specifically targeting the treatment of:
-
|
Alzheimer’s Disease
(AD)
|
-
|
Fibromyalgia
|
-
|
Multiple Sclerosis
(MS)
|
-
|
Traumatic Brain Injury
(TBI)
|
-
|
Amyotrophic Lateral Sclerosis
|
-
|
Blood Sepsis and Viremia
|
|
(ALS/Lou Gehrig’s Disease)
|
-
|
Cancer
|
We have a two-fold corporate focus:
One is to target Alzheimer’s disease, ALS, Blood Sepsis, Leukemia, and other life-threatening cancers, and to do this we intend to develop our proprietary
Sequential-Dialysis Technique
. The methodology involved in this technique is largely unexplored and has been described by scientists as the “wild west” of modern medicine. Consequently, our first entry into this market carries significant obstacles before reaching the significant opportunities of a $97 billion industry.
The other is the development of our proprietary drug
Feldetrex™
, a potential treatment for Multiple Sclerosis, Fibromyalgia, and Traumatic Brain Injury. The formulation used in the current
Feldetrex™
will be individually tailored to the various illnesses we intend to target, with each formulation being given a unique proprietary brand name. In one isolated case study,
Feldetrex™
was shown to demonstrate decreased symptomology of Multiple Sclerosis. The annual market size of MS treatment is $500 million and the annual market size for all proposed
Feldetrex™
market segments is $2,600 million.
To overcome the significant obstacles inherent to the development of our
Sequential-Dialysis Technique
and
Feldetrex™
drug, we are seeking to partner with prestigious institutions and pharmaceutical companies with the substantial infrastructure and resource capacity to perform experimentation and to engage in product development in an inexpensive and efficient manner.
SEQUENTIAL-DIALYSIS TECHNIQUE
Our proprietary
Sequential-Dialysis Technique
is a methodology for the removal of those molecules which are harmful and responsible for causing diseases. A significant disappointment in the practice of modern medicine is that the capabilities do exist to eliminate the presence of most illnesses, including life-threatening diseases such as AIDS and Cancer, but with a caveat that the process of treatment comes with catastrophic side effects that can and often do kill the patient.
Our development is that the innovative
Sequential-Dialysis Methodology
is done extra-corporeally (outside the body) and thus, the myriad of severe side effects which are normally encountered do not occur. This is a truly unique and innovative method for alleviating disease.
This methodology can be used for the prevention of cancer metastasis, for directly attacking the causation of intractable seizures, for preventing the death of anterior motor neurons in ALS, for preventing the cause of the neuropathological changes in Alzheimer’s disease and Traumatic Brain Injury and for eradicating the causations of infectious diseases.
Through our
Sequential-Dialysis Technique
, we ultimately hope to provide a cure for cancer if not only to dramatically extend the lives of suffering patients.
Description of Illness
Cancer is a class of diseases in which a group of cells display 1) uncontrolled growth beyond the normal limits of cell reproduction, 2) invasion and destruction of adjacent tissues, and sometimes 3) metastasis or spread to other locations in the body via lymph or blood. These three properties of malignant cancers differentiate them from benign tumors which are self-limited and do not invade or metastasize. Most cancers form a tumor, but some, like leukemia, do not
1
.
Cancer may affect people at all ages but the risk for most varieties of cancer increases with age. In the United States, cancer accounts for nearly 1 in 4 deaths. According to the American Cancer Society about 569,490 Americans will die of Cancer this year, making the death toll a staggering 1,500 people per day
2
. Globally and on average, 7.5 million people die of Cancer every year. There are about 11.7 million people living with cancer in the United States
3
.
Nearly all cancers are caused by abnormalities in the genetic material of the transformed cells. These abnormalities may be due to the effect of carcinogens, such as tobacco smoke, radiation, chemicals, or infectious agents. Other cancer-promoting genetic abnormalities may be randomly acquired through errors in DNA replication, or are inherited, and thus are present in all cells from birth. The heritability of cancers is usually affected by complex interactions between carcinogens and the host’s genome. New aspects of the genetics of cancer pathogenesis, such as DNA methylation and microRNAs are increasingly recognized as important.
1 http://www.news-medical.net/health/What-is-Cancer.aspx
2 http://www.cancer.org/acs/groups/content/@epidemiologysurveilance/documents/document/acspc-026238.pdf
3 http://www.cancer.org/cancer/cancerbasics/cancer-prevalence
Conventional Method of Treatment
Cancer can be treated today by surgery, chemotherapy, radiation, immunotherapy, monoclonal antibody therapy, or other methods. The choice of therapy depends upon the location and grade of the tumor and the stage of the disease, as well as the general state of the patient. A number of experimental cancer treatments are also under development. Complete removal of the cancer without damage to the rest of the body is the goal of treatment. Sometimes this can be accomplished by surgery, but the propensity of cancers to invade adjacent tissue or to spread to distant sites by microscopic metastasis often limits its effectiveness. The effectiveness of chemotherapy is often limited by toxicity to other tissues in the body. Radiation damages normal tissue
4
.
Potential for Sequential Dialysis Technique
We intend to develop a methodology for treating cancer which is completely different from the standard treatments of chemotherapy and radiation therapy that are now being utilized. Due to the fact that all presently known treatments directly inject chemotherapeutic agents into the body of a patient and/or directly irradiate the patient, there is a very high level of adverse side effects, such as kidney failure, encephalopathy, neuropathy, heart toxicity, and other severe morbidities.
We intend to develop our intellectual property applications for utilizing a proprietary methodology in which the cancer patient’s blood is utilized to remove metastatic cancer cells. This is accomplished by sequentially dialyzing the patient’s blood extra-corporeally. Through this process, the cancer can be targeted through a number of innovative techniques being developed by the Company.
This extra-corporeal methodology for cancer treatment has an enormous potentiality for decreasing the side effects of chemotherapy and irradiation treatment in cancer patients. Our methodology may also increase the efficacy of cancer treatment by allowing for much higher dosages of anti-neoplastic agents to be used through this extra-corporeal methodology. Due to the fact that this methodology completely avoids exposure of the patient’s body to these anti-cancer agents, dosages that cannot be normally tolerated can now be utilized in fighting the cancer.
4 http://www.kfshrcj.org/NR/rdonlyres/AC6F2108-37CB-4C32-999B-B292ED658481/2846/CancerTreatment.pdf
Description of Illness
Alzheimer’s disease is a dementing illness, which induces a progressive impairment of intellectual functioning, including a loss of short term memory. There is also a progressive impairment in executive functioning with occasional psychiatric manifestations such as depression and delirium. Delirium is characterized by an acute confusion. Oftentimes patients have language impairment and apraxia—an inability to perform previously learned tasks. Patients also often times show agnosia, an inability to recognize objects, and patients have a loss of visual-spatial abilities, for example oftentimes becoming lost in familiar surroundings. Occasionally hallucinations occur in severe forms of Alzheimer’s disease.
Alzheimer’s disease comes from neuropathic changes in the brain which includes the accumulation of neurofibrillary tangles and amyloid plaques in the cortex of the brain
5
. Neurofibrillary tangles are composed of Tau proteins, which are deposited within the neurons of the brain. Thus, Tau proteins are the causation of Alzheimer’s disease and other Tauopathies such as Pick’s Disease, Tuberous Sclerosis and certain forms of Parkinson’s disease.
A report by the Alzheimer’s Association examining the current trajectory of Alzheimer’s disease shows that the number of Americans age 65 and older who have Alzheimer’s disease will increase from 5.1 million today to 13.5 million by mid-century. The report entitled “
Changing the Trajectory of Alzheimer’s Disease: A National Imperative
” shows that “in the absence of disease-modifying treatments, the cumulative cost of care for people with Alzheimer’s from 2010 to 2050 will exceed $20 trillion, in today’s dollars. Total costs of care for individuals with Alzheimer’s disease by all payers will soar from $172 billion in 2010 to more than $1 trillion in 2050.” During this time, the Medicare costs of Alzheimer’s disease will soar 600% to $627 billion and the Medicaid costs of Alzheimer’s disease will soar 400% to $178 billion
6
.
Conventional Method of Treatment
Presently, there is no cure for Alzheimer’s disease. Treatments exist but only target the symptoms of Alzheimer’s disease without targeting the underlying progression of the disease. Consequently the projected future life span of an individual diagnosed with Alzheimer’s disease is 5.7 years.
Potential for Sequential-Dialysis Technique
We believe that our proprietary
Sequential-Dialysis Technique
can be used to prevent the onset of Alzheimer’s disease. This would be done by removing the proteins responsible for the pathologic changes in the brain, namely the protein Tau; thus, preventing the cause of the neuropathic changes that cause Alzheimer’s disease. We believe that our
Sequential-Dialysis Technique
can also be used in this fashion to treat Traumatic Brain Injury.
5 McPhee, Stephen J.
Current Medical Diagnosis & Treatment
. 47
th
ed. New York: McGraw Hill, 2008. Print.
6 http://www.alz.org/documents_custom/FINAL_Trajectory_Report_Release-EMB_5-11-10.pdf
Description of Illness
Amyotrophic Lateral Sclerosis (ALS) is a progressive neurodegenerative disease that affects nerve cells in the brain and spinal cord. While the cause of ALS is uncertain, the process of ALS is known to occur as motor neurons in affected patients progressively degenerate until death. As motor neurons degenerate, they can no longer send impulses to muscle fibers that normally result in muscle movement. Eventually, the motor neurons die and the ability of the brain to initiate and control muscle movements is lost. With voluntary muscle action progressively affected, patients in the later stages of the disease become totally paralyzed
7
.
ALS has been frequently referred to as Lou Gehrig’s disease, after the famous New York Yankees baseball player diagnosed with the disease in 1939.
Annually, about 5,600 people are diagnosed with ALS in the United States. The projected future life span of a diagnosed patient is two to five years. It is projected that of the current US population, 300,000 people will die of ALS before a cure is found.
The financial cost to families of persons with ALS is exceedingly high. In the advanced stages, care can cost up to $200,000 a year. Entire savings of relatives of patients are quickly depleted because of the extraordinary cost involved in the care of ALS patients
8
.
Conventional Method of Treatment
There is currently no cure or treatment that halts or reverses ALS. However, there is one FDA approved drug, Riluzole, which modestly slows the progression of ALS.
Potential for Sequential-Dialysis Technique
Numerous medical studies have proven that the causation of ALS is an overexcitation of the anterior motor neurons in the spinal cord. Our
Sequential-Dialysis Technique
method removes those excitatory neural transmitters that cause the death of those cells. Thus, we hope to prevent the development of ALS; thereby, giving hope to patients of a currently unconquerable disease.
7 http://www.alsa.org/als/what.cfm
8 http://www.focusonals.com/alsfacts.htm
Description of Illness
Blood Sepsis, also known as Blood Poisoning, is an infection of the blood stream. Sepsis is caused when toxin releasing bacteria, such as Staphylococcus, enter the blood. Blood Sepsis is a particularly devastating disease due to the domino-effect of organ shutdown which causes multiple organ failure. Blood Sepsis causes a whole body inflammatory state called Systemic Inflammatory Response Syndrome (SIRS).
Blood Sepsis first results in the shutdown of kidneys; thus patients require standard dialysis immediately to prevent death. As the disease progresses, vital signs collapse—the foremost of these being blood pressure. Subsequently, symptoms of Sepsis include elevated temperature, elevated heart rate, respiratory collapse, further organ failures, altered mental status and cardiac failure.
Septicemia is a major cause of death in the United States and puts people in the intensive care unit at a very high rate. Only about 1-2% of all hospitalizations in the United States are attributed to Septicemia, though Septicemia accounts for as much as 25% of bed-utilization in intensive-care units.
Conventional Method of Treatment
The traditional therapy of Blood Sepsis relies on intravenous treatment using multiple antibiotics. However, in intensive care units, even with today’s treatment, approximately 35% of patients with severe sepsis and 60% of patients with septic shock die within 30 days.
Septicemia is of particular concern because of the exceedingly high cost of treatment for Septicemia patients. A typical stay in the intensive care unit costs $10,000 per day with testing. Consequently, the treatment of Blood Sepsis is one of the most costly expenditures for hospitals in America.
Potential for Sequential-Dialysis Technique
We hope to conquer Blood Sepsis and Viremia by using our proprietary Sequential-Dialysis Technique. If proven successful, this technique would dialyze the toxin producing bacteria out of the blood by using antibodies; thus saving countless lives while also providing significant cost savings to hospitals around the country.
FELDETREX™
Our proprietary
Feldetrex™
drug is a proprietary combination of generic medications which is believed to reduce the symptomatology of Multiple Sclerosis, Fibromyalgia, and Traumatic Brain Injury.
The dosages, combinations, and ingredients of
Feldetrex™
allow it to be efficacious yet have lower side effects. There is extensive pathologic and pharmacologic literature which confirms this assumption and supports the
Feldetrex™
combination of medications for those diseases.
Although a combination of generic medications, patent attorneys confirm that we have proprietary rights to our
Feldetrex™
drug. In this way,
Feldetrex™
is similar to Viagra®, which was a proprietary cardiac drug prior to its current use and ownership by Pfizer. Consequently, we have one pending patent application for our
Feldetrex™
drug—intending to increases our
Feldetrex™
related patent applications to three in the near future.
Feldetrex™
does not compete with FDA approved medications for Multiple Sclerosis, Fibromyalgia, or Traumatic Brain Injury but, rather, is an add-on drug to decrease symptomatology in those conditions.
Feldetrex™
will not compete against our proprietary
Sequential-Dialysis Technique
in the market to treat Traumatic Brain Injury, but rather will work conjunctively with
Feldetrex™
.
Description of Illness
Multiple Sclerosis (MS) is a devastating inflammatory neurologic disease in which white matter, known as myelin, is damaged—causing episodic or neurological symptoms. The destruction of myelin inhibits communications between the nerves in the brain.
Symptoms of Multiple Sclerosis include extreme fatigue, numbness, weakness, difficulty with eyesight, spasticity, speech problems, and problems with coordination. Multiple Sclerosis has its greatest incidence in young adults and patients are usually diagnosed at less than 55 years of age at the onset of the illness.
The cause of Multiple Sclerosis is unknown, although the disease is believed to be an autoimmune problem triggered by a virus—meaning that the patient’s immune cells attack and destroy the patient’s myelin. In the United States, there are approximately 400,000 patients diagnosed with MS and approximately 200 new patients are diagnosed every week
9
. Globally, Multiple Sclerosis is believed to effect 2.1 million people, mostly of European origin.
Conventional Method of Treatment
‘ABC’ drugs Avonex, Beta-Seron, Copaxone are used to treat Multiple Sclerosis but have been shown to barely beat out placebos in efficacy and are not approved in England for government subsidy. The drug Tysavri was deemed dangerous and was taken off the market for over a year.
Another treatment of MS is high dose steroids; though, this treatment simply decreases symptoms without curing MS.
Potential for
Feldetrex™
The benefit of our proprietary
Feldetrex™
drug is that the drug
Feldetrex™
decreases patient symptoms but has few side effects. Significantly, the side effects of
Feldetrex™
are fewer than the side effects of the commonly used ‘ABC’ drugs. Patients who take
Feldetrex™
can expect reduced fatigue, reduced gait difficulty, and a better feeling of wellbeing.
Our proprietary
Feldetrex™
drug will not compete with typical treatment methods for Multiple Sclerosis, but rather, is simply an add-on drug to increase the effectiveness of treatment.
9 http://www.nationalmssociety.org/about-multiple-sclerosis/what-we-know-about-ms/who-gets-ms/index.aspx
Description of Illness
Fibromyalgia is a common illness affecting approximately 2% of the general population, most common amongst women 20 to 50 years of age. Approximately five million Americans suffer from the debilitating illness. The cause of Fibromyalgia is officially unknown and diagnosis of Fibromyalgia is a ‘diagnosis of exclusion’—meaning that Fibromyalgia is diagnosed as an illness after Rheumatoid Arthritis and Lupus have been ruled out with a blood test.
Patients with Fibromyalgia suffer from debilitating fatigue, numbness, headaches, and chronic widespread musculoskeletal pain with multiple tender points. Fibromyalgia is a chronic condition lasting 6 months to many years. Patients commonly complain of chronic aching, pain, stiffness, sleep difficulty, headaches, and irritable bowel syndrome. Consequently, approximately 25% of patients with Fibromyalgia are work disabled. The direct and indirect costs of Fibromyalgia are, on average, $5,945 per patient
10
.
Conventional Method of Treatment
Lyrica (Pregabalin) is the only FDA approved medication for the treatment of Fibromyalgia. However, Lyrica oftentimes has side effects of dizziness, drowsiness and dry mouth. Rarely, Lyrica can cause suicidal ideation and severe agitation.
Potential for
Feldetrex™
The benefit of our proprietary
Feldetrex™
drug is that
Feldetrex™
can be used to alleviate the symptoms of patients with Fibromyalgia while generating very few side effects.
Feldetrex™
will reduce the need for narcotics and antidepressants in patients—treatments that can trigger harmful side effects such as addiction, heart problems, nausea, and vomiting. Patients who take
Feldetrex™
are expected to feel less pain, generally feel better, and have less fatigue.
Our
Feldetrex™
drug will not compete with currently existing treatments of Fibromyalgia, but, rather, would be an add-on-drug to increase the effectiveness of treatment.
10 http://www.cdc.gov/arthritis/basics/fibromyalgia.htm
Description of Illness
Traumatic Brain Injury (TBI) occurs when an external force traumatically injures the brain. TBI is a major cause of death and disability worldwide, especially in children and young adults. Causes of TBI include falls, vehicle accidents, and violence. Three separate processes of Traumatic Brain Injury work to injure the brain: 1) bruising (bleeding), 2) tearing, and 3) swelling. Brain trauma can be caused by a direct impact or by acceleration alone. In addition to the damage caused at the moment of injury, brain trauma causes
‘secondary injury’
, a variety of events that take place in the minutes and days following the injury. These processes, which include alterations in the cerebral blood flow and the pressure within the skull contribute substantially to the damage from the initial injury.
Each year, an estimated 1.7 million TBI-related deaths, hospitalizations, and emergency department visits occur in the United States. Of these patients, 52,000 die and 275,000 are hospitalized. 1.4 million patients are treated and released from an emergency department
11
.
Conventional Method of Treatment
The present treatment methodology for Traumatic Brain Injury is centered on the treatment of symptoms. There are currently no treatments that target the underlying pathology of Traumatic Brain Injury.
Currently used medications used to treat Traumatic Brain Injury, such as narcotics and antidepressants, have many side effects including addiction, arrhythmia, liver and kidney damage, abdominal problems, nausea, and vomiting.
Potential for
Feldetrex™
Our proprietary
Feldetrex™
drug has a mechanism of action via a manipulation of central nervous system neurotransmitters, which involves the cerebral cortex, limbic system, and spinothalamic tracts. Consequently, we believe that
Feldetrex™
is able to reduce the symptomatology of Traumatic Brain Injury with a minimum of side effects.
11 http://www.caregiver.org/caregiver/jsp/content_node.jsp?nodeid=441
Development Plans
Central Nervous System Disorders
Feldetrex™
Feldetrex™ is a treatment for decreasing the morbidity of Multiple Sclerosis patients. Multiple Sclerosis is a chronic, progressive illness that affects the nerves in the brain, spinal cord, and other parts of the central nervous system. Multiple Sclerosis affects over 400,000 people in the United States and may affect 2.5 million people worldwide. The licensor under our License Agreements has two pending provisional patent applications with variations featuring oral and/or possibly transdermal medication applications. Feldetrex™ is a proprietary combination of generic medications that may decrease the symptomatology of fatigue, gait difficulty, depression, and incontinence in patients with Multiple Sclerosis. We believe that Feldetrex™ has its favorable mechanism of action through a manipulation of brain neurotransmitters, which we believe occurs in a nontoxic manner due to the relatively low doses of the composite compounds. We intend to compare the efficacy of Feldetrex™ to the standard injectible medications currently utilized to treat Multiple Sclerosis, such as Betaseron (Interferon beta-1b), Avonex (Interferon beta-1a), and Copaxone (Glatiramer acetate). Additionally, we plan on utilizing Feldetrex™ in peer reviewed medical studies at major medical centers to ascertain the efficacy of Feldetrex™ in symbiotically increasing the efficacy of the standard FDA approved Multiple Sclerosis injection drugs.
Feldetrex™ Development Plans
We have received a verbal commitment from a leading physician on staff at the University of Pittsburgh Medical Center-Pittsburgh (UPMC-Pittsburgh) to conduct an evaluation of Feldetrex™ sometime in 2011. UPMC is the largest hospital complex in western Pennsylvania. The proposed trial period will be just 90 days, followed by an evaluation of the adequacy of this period for a complete study normally demanded by the medical community. In addition, preliminary contact has been made with the Robert Packer Hospital in Sayre, PA to conduct a parallel study. This hospital is listed as being in the top 100 largest hospitals in the country.
In order for any medication to have potential in Europe, parallel tests must be conducted there. To that end, we have been in contact with the Center for New Medication Testing and Development at the University of Warwick in England.
At the conclusion of the anticipated successful clinical trials for Feldetrex™, we plan to publish the results in established medical journals and subsequently contact the large pharmaceutical firms for a possible sale of the rights to manufacture and distribute Feldetrex™.
Infectious Diseases
The licensor under our License Agreements has filed a provisional patent application for the dialyzation of blood from a patient who is dying from septicemia. Septicemia is a rapidly fatal condition in which bacteria have infected the bloodstream of a patient. These patients subsequently suffer from rapid renal failure, encephalopathy, and heart failure unless the septicemia is quickly reversed. Each year approximately 200,000 Americans die from septicemia. The traditional treatment of septicemia has been intravenous antibiotics, which have limited efficacy and are highly toxic.
Our method of treatment is to use an extracorporeal methodology of blood dialysis in which the bacteria-infected blood is sterilized through a proprietary methodology of dialyzation in which the blood is placed into contact with antibiotics within the dialysis lumen for a specified period, which subsequently kills the bacterial pathogen with a sequential removal of the antibiotic in order to negate any toxicity to the treated patient. We anticipate that this method could be utilized in place of the standard methodology or could be utilized as an adjunctive treatment for intensive care unit patients.
Development Plans
We plan to prove out the concept in a hospital laboratory within the 2011 calendar year. After proof of concept experimentations, we intend to implement a clinical hospital/doctor test plan for patients using the same contacts developed in the clinical trials described above for Feldetrex™. We anticipate that these trials will be initiated after successful laboratory testing no earlier than 2012. Actual trials with patients may continue for up to one year. We plan to contact the large medical firms, such as Johnson and Johnson, Pfizer, and Eli Lilly, to attempt to sell the rights to use our technology after the anticipated successful clinical trials, beginning as early as mid-to-late 2012.
Oncology
The licensor under our License Agreements is currently developing applications for utilizing a proprietary methodology in which the cancer patient’s blood is utilized to remove metastatic cancer cells. This is accomplished by dialyzing the patient’s blood extra-corporeally, and, through our proprietary methodology, placing the cancer cells in contact with anti-neoplastic agents within the lumen of the dialysis apparatus. We believe this extra-corporeal methodology for cancer treatment has an enormous potentiality for decreasing the side effects of chemotherapy and irradiation treatment in cancer patients. Our methodology may also increase the efficacy of cancer treatment by allowing for much higher dosages of anti-neoplastic agents to be used through this extra-corporeal methodology. Because this method completely avoids exposure of the patient’s corpus to these anti-cancer agents, we believe dosages that cannot be normally tolerated can now be utilized in fighting the cancer.
Development Plans
We intend to initiate laboratory tests to prove our cancer-fighting technology throughout the 2011 calendar year. We plan to undertake additional studies at a university/hospital during 2011 and 2012. We estimate the cost for each of these studies to be between $300,000 and $500,000, including actual testing with cancer patients. At the anticipated successful conclusion of these studies, we plan to contact the large pharmaceutical/medical devices firms, such as Johnson & Johnson, Boston Scientific, Medtronics, Pfizer, and E. I. Lilly, to attempt to negotiate a partnership and/or sale of the technology.
Innovation by our research and development operations is very important to our success. Our goal is to discover, develop and bring to market innovative products and treatments that address major unmet medical needs, including initially, Multiple Sclerosis, Septicemia, and Cancer. We expect this goal to be supported by substantial research and development investments.
We conduct research internally and may also through contracts with third parties, through collaborations with universities and biotechnology companies and in cooperation with pharmaceutical firms. We may also seek out promising compounds and innovative technologies developed by third parties to incorporate into our discovery or development processes or projects, as well as our future product lines, through acquisition, licensing or other arrangements.
In addition to discovering and developing new products, processes and treatments, we expect our research operations to add value to our existing products and processes in development by improving their effectiveness and by discovering new uses for them.
We intend to seek a partnership with and/or sale of our products/technologies to large pharmaceutical and/or medical devices firms. These firms have the ability to effectively promote our products to healthcare providers and patients. Through their marketing organizations, they can explain the approved uses, benefits and risks of our products to healthcare providers, such as doctors, nurse practitioners, physician assistants, pharmacists, hospitals, Pharmacy Benefit Managers (PBMs), Managed Care Organizations (MCOs), employers and government agencies. They also market directly to consumers in the U.S. through direct-to-consumer advertising that communicates the approved uses, benefits, and risks of our products while continuing to motivate people to have meaningful conversations with their doctors. In addition, they sponsor general advertising to educate the public on disease awareness, important public health issues, and patient assistance programs.
The large pharmaceutical/medical devices firms principally sell their products to wholesalers, but they also sell directly to retailers, hospitals, clinics, government agencies and pharmacies and also work with MCOs, PBMs, employers and other appropriate healthcare providers to assist them with disease management, patient education and other tools that help their medical treatment routines.
Patents and Intellectual Property Rights
Our Licensors, Marv Enterprises, LLC and Altman Enterprises, LLC, have filed provisional patent applications for three patents in the areas of cancer, sepsis, and multiple sclerosis. If granted, we expect these patents to cover the medical treatments discussed above for Multiple Sclerosis, Blood Sepsis, and Cancer. Marv and Altman have licensed these technologies to us pursuant to the terms of the License Agreements. We anticipate that other technologies that derive from these patents will also belong to us and are covered by the license agreements.
Patents extend for varying periods according to the date of patent filing or grant and the legal term of patents in the various countries where patent protection is obtained. The actual protection afforded by a patent, which can vary from country to country, depends upon the type of patent, the scope of its coverage and the availability of legal remedies in the country.
Altman Enterprises, LLC has also filed a trademark application for the Feldetrex mark, and has also licensed this to us pursuant to the terms of the License Agreements.
We expect our patent and related rights to be of material importance to our business.
Our business is conducted in an intensely competitive and often highly regulated market. Our treatments face competition in the form of branded drugs, generic drugs and the currently practiced treatments for Multiple Sclerosis, Blood Sepsis, and Cancer. The principal forms of competition include efficacy, safety, ease of use, and cost effectiveness. Where possible, companies compete on the basis of the unique features of their products, such as greater efficacy, better patient ease of use or fewer side effects. A lower overall cost of therapy is also an important factor. Products that demonstrate fewer therapeutic advantages must compete for inclusion based primarily on price. Though the means of competition vary among product categories, demonstrating the value of our medications and procedures will be a critical factor for our success.
Our competitors include large worldwide research-based drug companies, smaller research companies with more limited therapeutic focus, and generic drug manufacturers. We compete with other companies that manufacture and sell products that treat similar diseases as our major medications and procedures.
Our business may be subject to a variety of federal, state and local environmental protection measures. We intend to comply in all material respects with applicable environmental laws and regulations.
We expect our business to be subject to varying degrees of governmental regulation in the United States and any other countries in which our operations are conducted. In the United States, regulation by various federal and state agencies has long been focused primarily on product safety, efficacy, manufacturing, advertising, labeling and safety reporting. The exercise of broad regulatory powers by the FDA continues to result in increases in the amounts of testing and documentation required for FDA clearance of new drugs and devices and a corresponding increase in the expense of product introduction. Similar trends are also evident in major markets outside of the United States.
The regulatory agencies under whose purview we intend to operate have administrative powers that may subject us to such actions as product withdrawals, recalls, seizure of products and other civil and criminal sanctions.
Employees
As of the date of this hereof, we do not have any employees. All services to date have been performed by our officers and directors.
ORGANIZATION WITHIN LAST FIVE YEARS
Premier Biomedical, Inc. was formed on May 10, 2010 in the State of Nevada.
DESCRIPTION OF PROPERTY
We do not currently lease or use any office space. Our operations are being conducted out of the residence of our President.
LEGAL PROCEEDINGS
We are not a party to or otherwise involved in any legal proceedings.
In the ordinary course of business, we are from time to time involved in various pending or threatened legal actions. The litigation process is inherently uncertain and it is possible that the resolution of such matters might have a material adverse effect upon our financial condition and/or results of operations. However, in the opinion of our management, other than as set forth herein, matters currently pending or threatened against us are not expected to have a material adverse effect on our financial position or results of operations.
SELECTED FINANCIAL DATA
|
|
As of and for the
Period from May
10, 2010 (inception)
to December 31,
|
|
|
As of and for the
Three Months
Ended March 31,
|
|
|
|
2010
|
|
|
2011
|
|
Premier Biomedical, Inc.
|
|
(audited)
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
Statement of Operations Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
-
|
|
|
$
|
-
|
|
Net operating income (loss)
|
|
$
|
(2,080
|
)
|
|
$
|
(11,483
|
)
|
Net income (loss)
|
|
$
|
(2,156
|
)
|
|
$
|
(11,564
|
)
|
|
|
|
|
|
|
|
|
|
Balance Sheet Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
|
|
$
|
373
|
|
|
$
|
57,829
|
|
Current assets
|
|
$
|
373
|
|
|
$
|
62,329
|
|
Total assets
|
|
$
|
373
|
|
|
$
|
62,329
|
|
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
$
|
2,429
|
|
|
$
|
3,624
|
|
Total liabilities
|
|
$
|
2,429
|
|
|
$
|
3,624
|
|
Total stockholders’ equity (deficit)
|
|
$
|
(2,056
|
)
|
|
$
|
58,705
|
|
|
|
|
|
|
|
|
|
|
Total loss per common share
|
|
$
|
(0.00
|
)
|
|
$
|
(0.00
|
)
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
Disclaimer Regarding Forward Looking Statements
You should read the following discussion in conjunction with our financial statements and the related notes and other financial information included in this Form S-1. In addition to historical financial information, the following discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual results could differ materially. Factors that could cause or contribute to these differences include those discussed below and elsewhere in this Form S-1, particularly in the Section titled Risk Factors.
Although the forward-looking statements in this Registration Statement reflect the good faith judgment of our management, such statements can only be based on facts and factors currently known by them. Consequently, and because forward-looking statements are inherently subject to risks and uncertainties, the actual results and outcomes may differ materially from the results and outcomes discussed in the forward-looking statements. You are urged to carefully review and consider the various disclosures made by us in this report and in our other reports as we attempt to advise interested parties of the risks and factors that may affect our business, financial condition, and results of operations and prospects.
Summary Overview
We are a research-based company that discovers and develops medical treatments for humans, specifically targeting the treatment of Alzheimer’s Disease
(AD),
Fibromyalgia, Multiple Sclerosis
(MS),
Traumatic Brain Injury
(TBI),
Amyotrophic Lateral Sclerosis
(ALS/Lou Gehrig’s Disease),
Blood Sepsis and Viremia, and Cancer.
We have not generated any revenue to date, and we do not currently have a product ready for market.
Going Concern
As a result of our financial condition, we have received a report from our independent registered public accounting firm for our financial statements for the period from May 10, 2010 (Inception) to December 31, 2010 that includes an explanatory paragraph describing the uncertainty as to our ability to continue as a going concern. In order to continue as a going concern we must effectively balance many factors and begin to generate revenue so that we can fund our operations from our sales and revenues. If we are not able to do this we may not be able to continue as an operating company. At our current revenue and burn rate, our cash on hand will last approximately eleven months. We anticipate that we will begin generating revenues in 2013, that our revenues will increase, and that our revenues will exceed our expenses in less than 36 months. However, there is no assurance that our existing cash flow will be adequate to satisfy our existing operating expenses and capital requirements.
Three Month Period ended March 31, 2011
Results of Operations
Introduction
We had no revenues for the three month period ended March 31, 2011. Our operating expenses were $11,483, consisting mostly of general and administrative expenses as we finished organizing our corporate entity and launched our initial capital raise.
Revenues and Net Operating Income (Loss)
Our revenues, operating expenses, and net operating income (loss) for the three months ended March 31, 2011 were as follows:
|
|
Period from
May 10, 2010
(Inception) to
December 31, 2010
|
|
|
|
|
|
Revenue
|
|
$
|
-
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
General & administrative
|
|
|
11,093
|
|
Professional fees
|
|
|
390
|
|
Total operating expenses
|
|
|
11,483
|
|
|
|
|
|
|
Net operating loss
|
|
|
(11,483
|
)
|
Other expense
|
|
|
(81
|
)
|
|
|
|
|
|
Net loss
|
|
$
|
(11,564
|
)
|
Liquidity and Capital Resources
Introduction
During the three months ended March 31, 2011, because we did not generate any revenues, we had negative operating cash flows. Our cash on hand as of March 31, 2011 was $57,829, which came from the sale of our common stock, and our monthly cash flow burn rate is approximately $5,000. As a result, although we don’t have significant short term cash needs, as our operating expenses increase we will face medium to long term cash needs. We anticipate that these needs will be satisfied through the sale of our securities until such time as our cash flows from operations will satisfy our cash flow needs. As soon as we are a reporting company, we anticipate that our short term cash needs will increase by approximately $30,000 per quarter, which we do not believe we will be able to satisfy from our revenues for some time.
Our cash, current assets, total assets, current liabilities, and total liabilities as of March 31, 2011 and December 31, 2010, respectively, are as follows:
|
|
March 31,
2011
|
|
|
December
31,
2010
|
|
|
Change
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
Cash
|
|
$
|
57,829
|
|
|
$
|
373
|
|
|
$
|
57,456
|
|
Total Current Assets
|
|
|
62,329
|
|
|
|
373
|
|
|
|
61,956
|
|
Total Assets
|
|
|
62,329
|
|
|
|
373
|
|
|
|
61,956
|
|
Total Current Liabilities
|
|
|
3,624
|
|
|
|
2,429
|
|
|
|
1,195
|
|
Total Liabilities
|
|
$
|
3,624
|
|
|
$
|
2,429
|
|
|
$
|
1,195
|
|
Our cash increased by $57,456 as of March 31, 2011 as compared to December 31, 2010 because of the proceeds from the sale of our common stock. Our total current assets, and total assets, increased by $61,956 during the same period for the same reason.
Our current liabilities increased by $1,195 as of March 31, 2011 as compared to December 31, 2010 primarily because of an increase in notes payable to related parties of $1,000. Our total liabilities increased by the same $1,195 for the same reason.
In order to repay our obligations in full or in part when due, we will be required to raise significant capital from other sources. There is no assurance, however, that we will be successful in these efforts.
Cash Requirements
Our cash on hand as of March 31, 2011 was $57,829, which came from the sale of our common stock, and our monthly cash flow burn rate is approximately $5,000. As a result, although we don’t have significant short term cash needs, as our operating expenses increase we will face medium to long term cash needs. We anticipate that these needs will be satisfied through the sale of our securities until such time as our cash flows from operations will satisfy our cash flow needs. As soon as we are a reporting company, we anticipate that our short term cash needs will increase by approximately $30,000 per quarter, which we do not believe we will be able to satisfy from our revenues for some time.
Sources and Uses of Cash
Operations
Our net cash used in operating activities for the three month period ended March 31, 2011 was $15,869, which consisted of our net loss from operations of $11,564, increased by prepaid expenses of $4,500, and offset by an increase in accounts payable of $135 and accrued interest to related parties of $135.
Investments
We had no activity related to cash flows from investing activities.
Financing
Our net cash provided by financing activities for the three month period ended March 31, 2011 was $73,325, which consisted of proceeds from a note payable to related parties of $1,000 and proceeds from the sale of common stock of $72,325.
Period from May 10, 2010 (Inception) to December 31, 2010
Results of Operations
Introduction
We had no revenues for the period from May 10, 2010 (Inception) to December 31, 2010. Our operating expenses were a nominal $2,080 during this same period because we were in our formative stage and had not yet begun operations.
Revenues and Net Operating Income (Loss)
Our revenues, operating expenses, and net operating income (loss) for the period from May 10, 2010 (Inception) to December 31, 2010 were as follows:
|
|
Period from
May 10, 2010
(Inception) to
December 31, 2010
|
|
|
|
|
|
Revenue
|
|
$
|
-
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
General & administrative
|
|
|
1,982
|
|
Professional fees
|
|
|
98
|
|
Total operating expenses
|
|
|
2,080
|
|
|
|
|
|
|
Net operating loss
|
|
|
(2,080
|
)
|
Other expense
|
|
|
(76
|
)
|
|
|
|
|
|
Net loss
|
|
$
|
(2,156
|
)
|
Debt Instruments, Guarantees, and Related Covenants
On December 31, 2010 the Company received an unsecured loan in the amount of $1,178, bearing interest at 8% and due on demand from the Company’s CEO.
On December 31, 2010 the Company received unsecured loans in the amount of $1,177, bearing interest at 8% and due on demand from the Company’s Chairman of the Board.
On March 31, 2010 the Company received an unsecured loan in the amount of $500, bearing interest at 8% and due on demand from the Company’s CEO.
On March 31, 2010 the Company received an unsecured loan in the amount of $500, bearing interest at 8% and due on demand from the Company’s Chairman of the Board.
Critical Accounting Policies and Estimates
Nature of Business
Premier Biomedical, Inc. (“the Company”) was incorporated in the state of Nevada on May 10, 2010 (“Inception”). The Company was formed to develop and market medications and procedures that address a significant number of the most highly visible health issues currently affecting mankind. The Company will market these medications and procedures to leading worldwide pharmaceutical firms via publication in medical journals and by direct contact.
These statements reflect all adjustments, consisting of normal recurring adjustments, which in the opinion of management are necessary for fair presentation of the information contained therein.
Development Stage Company
The Company is currently considered a development stage company as defined by FASB ASC 915-10-05. As a development stage enterprise, the Company discloses the deficit accumulated during the development stage and the cumulative statements of operations and cash flows from inception to the current balance sheet date. An entity remains in the development stage until such time as, among other factors, revenues have been realized. To date, the development stage of the Company’s operations consists of developing the business model and marketing concepts.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Cash and Cash Equivalents
We maintain cash balances in non-interest-bearing accounts, which do not currently exceed federally insured limits. For the purpose of the statements of cash flows, all highly liquid investments with an original maturity of three months or less are considered to be cash equivalents.
Fair Value of Financial Instruments
Under FASB ASC 820-10-05, the Financial Accounting Standards Board establishes a framework for measuring fair value in generally accepted accounting principles and expands disclosures about fair value measurements. This Statement reaffirms that fair value is the relevant measurement attribute. The adoption of this standard did not have a material effect on the Company’s financial statements as reflected herein. The carrying amounts of cash, prepaid expenses and accrued expenses reported on the balance sheet are estimated by management to approximate fair value primarily due to the short term nature of the instruments. The Company had no items that required fair value measurement on a recurring basis.
Basic and Diluted Loss Per Share
The basic net loss per common share is computed by dividing the net loss by the weighted average number of common shares outstanding. Diluted net loss per common share is computed by dividing the net loss adjusted on an “as if converted” basis, by the weighted average number of common shares outstanding plus potential dilutive securities. For the three months ended March 31, 2011 and the period from May 10, 2010 (inception) to December 31, 2010, potential dilutive securities had an anti-dilutive effect and were not included in the calculation of diluted net loss per common share.
The Company adopted FASB guidance on stock based compensation upon inception at May 10, 2010. Under FASB ASC 718-10-30-2, all share-based payments to employees, including grants of employee stock options, to be recognized in the income statement based on their fair values. Pro forma disclosure is no longer an alternative. The Company has not had any stock and stock options issued for services and compensation for the three months ended March 31, 2011 and the period from May 10, 2010 (inception) to December 31, 2010.
Revenue Recognition
Sales on fixed price contracts are recorded when services are earned, the earnings process is complete or substantially complete, and the revenue is measurable and collectability is reasonably assured. Provisions for discounts and rebates to customers, estimated returns and allowances, and other adjustments are provided for in the same period the related sales are recorded. The Company defers any revenue from sales in which payment has been received, but the earnings process has not occurred. No sales have yet commenced.
Advertising and Promotion
All costs associated with advertising and promoting products are expensed as incurred. These expenses were $-0- for the three months ended March 31, 2011 and the period from May 10, 2010 (inception) to December 31, 2010.
Income Taxes
Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. A valuation allowance is provided for significant deferred tax assets when it is more likely than not, that such asset will not be recovered through future operations.
Uncertain Tax Positions
In accordance with ASC 740, “Income Taxes” (“ASC 740”), the Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be capable of withstanding examination by the taxing authorities based on the technical merits of the position. These standards prescribe a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. These standards also provide guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition.
Various taxing authorities periodically audit the Company’s income tax returns. These audits include questions regarding the Company’s tax filing positions, including the timing and amount of deductions and the allocation of income to various tax jurisdictions. In evaluating the exposures connected with these various tax filing positions, including state and local taxes, the Company records allowances for probable exposures. A number of years may elapse before a particular matter, for which an allowance has been established, is audited and fully resolved. The Company has not yet undergone an examination by any taxing authorities.
The assessment of the Company’s tax position relies on the judgment of management to estimate the exposures associated with the Company’s various filing positions.
Recently Issued Accounting Pronouncements
In December 2010, the FASB issued ASU 2010-29, “Business Combinations (Topic 805): Disclosure of supplementary pro forma information for business combinations.” This update changes the disclosure of pro forma information for business combinations. These changes clarify that if a public entity presents comparative financial statements, the entity should disclose revenue and earnings of the combined entity as though the business combination that occurred during the current year had occurred as of the beginning of the comparable prior annual reporting period only. Also, the existing supplemental pro forma disclosures were expanded to include a description of the nature and amount of material, nonrecurring pro forma adjustments directly attributable to the business combination included in the reported pro forma revenue and earnings. These changes become effective for the Company beginning January 1, 2011. The Company’s adoption of this update did not have an impact on the Company’s financial condition or results of operations.
In December 2010, the FASB issued ASU 2010-28, “Intangible –Goodwill and Other (Topic 350): When to perform Step 2 of the goodwill impairment test for reporting units with zero or negative carrying amounts.” This update requires an entity to perform all steps in the test for a reporting unit whose carrying value is zero or negative if it is more likely than not (more than 50%) that a goodwill impairment exists based on qualitative factors, resulting in the elimination of an entity’s ability to assert that such a reporting unit’s goodwill is not impaired and additional testing is not necessary despite the existence of qualitative factors that indicate otherwise. These changes become effective for the Company beginning January 1, 2011. The adoption of this ASU did not have a material impact on our financial statements.
In April 2010, the FASB issued ASU No. 2010-18 regarding improving comparability by eliminating diversity in practice about the treatment of modifications of loans accounted for within pools under Subtopic 310-30 – Receivable – Loans and Debt Securities Acquired with Deteriorated Credit Quality (“Subtopic 310-30”). Furthermore, the amendments clarify guidance about maintaining the integrity of a pool as the unit of accounting for acquired loans with credit deterioration. Loans accounted for individually under Subtopic 310-30 continue to be subject to the troubled debt restructuring accounting provisions within Subtopic 310-40, Receivables—Troubled Debt Restructurings by Creditors. The amendments in this Update are effective for modifications of loans accounted for within pools under Subtopic 310-30 occurring in the first interim or annual period ending on or after July 15, 2010. The amendments are to be applied prospectively. Early adoption is permitted. The adoption of this ASU did not have a material impact on our financial statements.
In April 2010, the FASB issued ASU 2010-13, "Compensation—Stock Compensation (Topic 718) - Effect of Denominating the Exercise Price of a Share-Based Payment Award in the Currency of the Market in Which the Underlying Equity Security Trades (A consensus of the FASB Emerging Issues Task Force)" (“ASU 2010-13”). ASU 2010-13 clarifies that a share-based payment award with an exercise price denominated in the currency of a market in which a substantial portion of the entity’s equity securities trades should not be considered to contain a condition that is not a market, performance, or service condition. Therefore, such an award should not be classified as a liability if it otherwise qualifies as equity. This clarification of existing practice is effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2010, with early application permitted. The Company’s adoption of this update did not have an impact on the Company’s financial condition or results of operations.
In February 2010, the FASB issued ASU No. 2010-09 regarding subsequent events and amendments to certain recognition and disclosure requirements. Under this ASU, a public company that is a SEC filer, as defined, is not required to disclose the date through which subsequent events have been evaluated. This ASU is effective upon the issuance of this ASU. The adoption of this ASU did not have a material impact on our financial statements.
In January 2010, the FASB issued ASU No. 2010-06 regarding fair value measurements and disclosures and improvement in the disclosure about fair value measurements. This ASU requires additional disclosures regarding significant transfers in and out of Levels 1 and 2 of fair value measurements, including a description of the reasons for the transfers. Further, this ASU requires additional disclosures for the activity in Level 3 fair value measurements, requiring presentation of information about purchases, sales, issuances, and settlements in the reconciliation for fair value measurements. This ASU is effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years. The adoption of this ASU did not have a material impact on our financial statements.
In June 2009, the Financial Accounting Standards Board (“FASB”) issued the FASB Accounting Standards Codification (the “ASC”). The ASC has become the single source of non-governmental accounting principles generally accepted in the United States (“GAAP”) recognized by the FASB in the preparation of financial statements. The ASC does not supersede the rules or regulations of the Securities and Exchange Commission (“SEC”), therefore, the rules and interpretive releases of the SEC continue to be additional sources of GAAP for the Company. The Company adopted the ASC upon inception on May 10, 2010. The ASC does not change GAAP and did not have an effect on the Company’s financial position, results of operations or cash flows.
In May 2009, the FASB issued ASC 855-10 entitled “Subsequent Events”. Companies are now required to disclose the date through which subsequent events have been evaluated by management. Public entities (as defined) must conduct the evaluation as of the date the financial statements are issued, and provide disclosure that such date was used for this evaluation. ASC 855-10 provides that financial statements are considered “issued” when they are widely distributed for general use and reliance in a form and format that complies with GAAP. ASC 855-10 is effective for interim and annual periods ending after June 15, 2009 and must be applied prospectively. The adoption of ASC 855-10 did not have a significant effect on the Company’s financial statements. In connection with preparing the accompanying financial statements, management evaluated subsequent events through the date that such financial statements were issued (filed with the Securities and Exchange Commission).
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING
AND FINANCIAL DISCLOSURE
We have no disclosure required by this Item.
DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS, AND CONTROL PERSONS
The following table sets forth the names, ages, and biographical information of each of our current directors and executive officers, and the positions with the Company held by each person, and the date such person became a director or executive officer of the Company. Our executive officers are elected annually by the Board of Directors. The directors serve one-year terms until their successors are elected. The executive officers serve terms of one year or until their death, resignation or removal by the Board of Directors. Family relationships among any of the directors and officers are described below.
Name
|
|
Age
|
|
Position(s)
|
|
|
|
|
|
William A. Hartman
|
|
69
|
|
President, Chief Executive Officer, and Director (June 2010)
|
|
|
|
|
|
Dr. Mitchell S. Felder
|
|
57
|
|
Chairman of the Board of Directors and the Scientific Advisory Board (June 2010)
|
|
|
|
|
|
Heidi H. Carl
|
|
40
|
|
Secretary and Treasurer, Director (June 2010)
|
|
|
|
|
|
Ramon D. Foltz
|
|
71
|
|
Director (June 2010)
|
|
|
|
|
|
Jay Rosen
|
|
57
|
|
Director (June 2010)
|
|
|
|
|
|
Justin Felder
|
|
21
|
|
Director (June 2010)
|
|
|
|
|
|
Scott Barnes
|
|
62
|
|
Director (December 2010)
|
William A. Hartman
, age 68, is our President and Chief Executive Officer and a member of our Board of Directors. From October 2006 to March 2008, Mr. Hartman was the Chief Operating Officer of Nanologix, Inc. From July 1991 to July 2000, Mr. Hartman was a Director at TRW Automotive. From 1984 to 1991, Mr. Hartman was Chief Engineer at TRW Automotive and from 1979 to 1984, he was Division Quality Compliance Manager at Ford Motor Company. At TRW Automotive, Mr. Hartman was one of the auto industry pioneers of the concept of grouping related components into systems and modules and shipping just-in-time to the vehicle assembly plants. He founded and headed a separate business group within TRW Automotive with plants in the U.S., Mexico and Europe with combined annual sales of $1.3 Billion. Academic credentials include a BSME degree from Youngstown State University and a MSIA degree (Industrial Administration/Management) from the University of Michigan.
Dr. Mitchell S. Felder
, age 57, is our Chairman of the Board of Directors and our Scientific Advisory Board.
Dr. Felder is a practicing Board Certified Neurologist. Dr. Felder acquired a B.A. Degree from the University of Pennsylvania in 1975 and an M.D. Degree from the University of Rome, Faculty of Medicine in 1983. He has been Board Certified by both the American Academy of Clinical Neurology and the American Board of Psychiatry and Neurology. Dr. Felder has authored or co-authored six publications, three studies, and has 18 issued patents. Dr. Felder is the former President, Chairman, and founder of Infectech/Nanologix—growing the company from startup to a $100 million market cap. Dr. Felder has more than 20 years of management experience.
Heidi H. Carl
, age 39, is our Secretary, Treasurer, and a member of our Board of Directors. From June 2007 to May 2009, Heidi was the Product Development Specialist at General Motors Corporation. From May 2006 to May 2007, Heidi was the Associate Marketing Manager at Gerneral Motors Corporation. From May 2003 to May 2006, Heidi was the Marketing Specialist at General Motors Corporation and from May 1999 to May 2003, Heidi was the District Area Parts Manager at General Motors Corporation. Academic credentials include a BSBA degree from Madonna University and a ASBA degree from Oakland Community College.
Ramon D. Foltz
, age 71, has been a member of our Board of Directors since our inception in June 2010. From January 2000 to the present, Mr. Foltz has engaged in consulting for various manufacturing firms and the practice of patent law. From August 1972 to January 2000, Mr. Foltz was a Senior Patent Lawyer at TRW Inc. for the TRW Automotive Sector with a brief stint as Director of Engineering for the TRW Automotive Steering and Suspension Group. In these roles, Mr. Foltz helped in obtaining intellectual property rights on inflatable restraints and steering and suspension systems for passenger and commercial vehicles, and started an automotive systems engineering group. From September 1964 to August 1972, Mr. Foltz was Patent Counsel and Senior Patent Counsel for Eaton Corporation. Mr. Foltz has BSME and Juris Doctor degrees from Ohio Northern University and is registered to practice in the State of Ohio, Circuit Court for the Federal Circuit, and U.S. Patent & Trademark Office.
Jay Rosen
, age 57, has been a member of our Board of Directors since our inception in June 2010. Mr. Rosen has been a partner at Rosen Associates, a real estate holding and management company, since 1971. He is also a partner at Midway Industrial Terminal, a real estate holding and management company, and has been since 2005. Mr. Rosen privately owns and manages the Rosen Farm, cellular towers and various other real estate properties, is the President of XintCorp, a small start up company for developing intellectual property, and is a former member of the NY Mercantile Exchange and the New York Futures Exchange. Mr. Rosen studied economics and finance at New York University and Columbia University.
Justin Felder
, age 21, has been a member of our Board of Directors since our inception in June 2010. He currently
attends the Wharton School of Business and has attended the prestigious Governor’s School for the Sciences as a National Merit Scholar Finalist. Mr. Felder has one granted patent and twenty patent applications.
Scott Barnes
, age 62, has been a member of our Board of Directors since December 23, 2010. Mr. Barnes is currently the Chief Legal Officer of both Presidio Financial, LLC, a receivables management company, and the Law Office of Curtis O. Barnes, P.C. Prior to joining those organizations in 2008, from 2004 to 2008, Mr. Barnes held the role of vice president and general counsel at Harcourt Assessment, Inc., a publisher of psychological and educational assessments, where he oversaw a team of attorneys, paralegals and other specialists who provided company-wide support on a broad range of legal and contract management issues. Prior to joining Harcourt Assessment, from 1980 to 2001, Mr. Barnes held a number of senior legal positions at TRW, Inc and at several of TRW’s business units, with a heavy emphasis on strategic business relationships and acquisitions. Mr. Barnes is admitted to practice law in California and Ohio and before the federal courts, and is a member of the Association of Corporate Counsel. He earned his law degree from the University of Michigan Law School. He also holds a bachelor’s degree in economics from UCLA and a master’s degree in business administration from UCLA’s Anderson Graduate School of Management.
Family Relationships
Heidi H. Carl is the daughter of William A. Hartman. Justin Felder is the son of Dr. Mitchell S. Felder.
EXECUTIVE COMPENSATION
Executive Compensation
We do not currently have written employment agreements with our executives. All are at-will employees or consultants whose compensation is set forth in the Summary Compensation Table below.
Summary Compensation Table
The following table sets forth information with respect to compensation earned by our Chief Executive Officer, President, and Chief Financial Officer for the period from May 10, 2010 (Inception) to December 31, 2010.
Name and
Principal Position
|
|
Year
|
|
Salary
($)
|
|
|
Bonus
($)
|
|
|
Stock
Awards
($)
|
|
|
Option
Awards
($)
|
|
|
Non-Equity
Incentive Plan
Compensation
($)
|
|
|
Nonqualified
Deferred
Compensation
($)
|
|
|
All Other
Compensation
($)
|
|
|
Total
($)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
William A. Hartman
|
|
2010
|
|
|
-0-
|
|
|
|
-0-
|
|
|
|
-0-
|
|
|
|
-0-
|
|
|
|
-0-
|
|
|
|
-0-
|
|
|
|
-0-
|
|
|
|
-0-
|
|
CEO
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Heidi H. Carl
|
|
2010
|
|
|
-0-
|
|
|
|
-0-
|
|
|
|
-0-
|
|
|
|
-0-
|
|
|
|
-0-
|
|
|
|
-0-
|
|
|
|
-0-
|
|
|
|
-0-
|
|
Secretary/Treasurer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Director Compensation
For the period from May 10, 2010 (Inception) to December 31, 2010, none of the members of our Board of Directors received compensation for his or her service as a director. We do not currently have an established policy to provide compensation to members of our Board of Directors for their services in that capacity. We intend to develop such a policy in the near future.
Outstanding Equity Awards at Fiscal Year-End
We do not currently have a stock option or grant plan.
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
The following table sets forth, as of June 6, 2011, certain information with respect to the Company’s equity securities owned of record or beneficially by (i) each Officer and Director of the Company; (ii) each person who owns beneficially more than 10% of each class of the Company’s outstanding equity securities; and (iii) all Directors and Executive Officers as a group.
Name and Address (1)
|
|
Common Stock
Ownership
|
|
|
Percentage of
Common Stock
Ownership (2)
|
|
|
Series A
Preferred
Stock
Ownership
|
|
|
Percentage of
Series A
Preferred
Stock
Ownership (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
William A. Hartman (4)(9)
|
|
|
21,000,000
|
(5)
|
|
|
71.3
|
%
|
|
|
1,000,000
|
(6)
|
|
|
50.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dr. Mitchell S. Felder (4)(10)
P.O. Box 1332
Hermitage, PA 16148
|
|
|
21,000,000
|
(5)
|
|
|
71.3
|
%
|
|
|
1,000,000
|
(6)
|
|
|
50.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Heidi H. Carl (4)(9)
|
|
|
1,000,000
|
|
|
|
8.7
|
%
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ramon D. Foltz (4)
|
|
|
1,000,000
|
|
|
|
8.7
|
%
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Jay Rosen (4)
|
|
|
1,000,000
|
|
|
|
8.7
|
%
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Justin Felder (4)(10)
|
|
|
1,000,000
|
|
|
|
8.7
|
%
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Scott Barnes (4)
|
|
|
500,000
|
|
|
|
4.4
|
%
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Lebrecht Group, APLC
406 W. South Jordan Pkwy
Suite 160
South Jordan, UT 84095 (7)
|
|
|
2,500,000
|
(8)
|
|
|
17.9
|
%
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All Officers and Directors
as a Group (7 Persons)
(2)(3)(4)(5)(6)
|
|
|
46,500,000
|
|
|
|
98.0
|
%
|
|
|
2,000,000
|
|
|
|
100.0
|
%
|
|
(1)
|
Unless otherwise indicated, the address of the shareholder is c/o Premier Biomedical, Inc.
|
|
(2)
|
Unless otherwise indicated, based on 11,451,200 shares of common stock issued and outstanding. Shares of common stock subject to options or warrants currently exercisable, or exercisable within 60 days, are deemed outstanding for purposes of computing the percentage of the person holding such options or warrants, but are not deemed outstanding for purposes of computing the percentage of any other person.
|
|
(3)
|
Unless otherwise indicated, based on 2,000,000 shares of Series A Convertible Preferred Stock issued and outstanding, which assumes the exercise of warrants by Mr. Hartman and Dr. Felder.
|
|
(4)
|
Indicates one of our officers or directors.
|
|
(5)
|
Includes 17,000,000 shares of common stock that may be acquired upon the exercise of warrants at $0.00001 per share, and 1,000,000 shares of common stock that may be acquired upon the conversion of 1,000,000 shares of Series A Convertible Preferred Stock.
|
|
(6)
|
Includes 1,000,000 shares of Series A Convertible Preferred Stock that may be acquired upon the exercise of warrants at $0.001 per share.
|
|
(7)
|
The Lebrecht Group, APLC is our legal counsel.
|
|
(8)
|
Includes 2,500,000 shares of common stock that may be acquired upon the exercise of warrants at $0.00001 per share
|
|
(9)
|
William A. Hartman is the father of Heidi H. Carl. Mr. Hartman disclaims ownership of shares held by his daughter.
|
|
(10)
|
Justin Felder is the son of Dr. Mitchell S. Felder. Dr. Felder disclaims ownership of shares held by his son.
|
The issuer is not aware of any person who owns of record, or is known to own beneficially, ten percent or more of the outstanding securities of any class of the issuer, other than as set forth above. The issuer is not aware of any person who controls the issuer as specified in Section 2(a)(1) of the 1940 Act. There are no classes of stock other than common stock issued or outstanding. The Company does not have an investment advisor.
There are no current arrangements which will result in a change in control.
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
License Agreements
On May 12, 2010, we entered into two separate License Agreements. One License Agreement was entered into with Altman Enterprises, LLC, wherein we obtained certain exclusive rights in (i) proprietary technology that is the subject of one pending PCT patent application relating to the treatment of auto-immune diseases, and (ii) the “Feldetrex” trademark. The other License Agreement was entered into with Marv Enterprises, LLC, wherein we obtained certain exclusive rights in proprietary technology that is the subject of two PCT patent applications relating to the treatment of blood borne carcinomas and sequential extracorporeal treatment of blood. Authority to execute the License Agreements on behalf of Altman and Marv is vested in Dr. Mitchell S. Felder, the Chairman of our Board of Directors. Because the Licensors are controlled by one of our directors, there may exist a conflict of interest in decisions made by the Company with respect to the Licenses.
As consideration for the two licenses, we agreed to (i) pay a royalty of five percent (5%) of any sales of products using the technology, with no minimum royalty, and (ii) reimburse the licensor for any costs already incurred in pursuing its proprietary rights in the licensed technology and pay any costs incurred for maintaining or obtaining the licensors’ proprietary rights in the licensed technology in the U.S. and in extending the intellectual property to other countries around the world. Licensor shall have sole discretion to select other countries into which exclusive rights in the licensed technology may be pursued, and if we decline to pay those expenses, then licensor may pay said expenses and our licensed rights in those countries will revert to the licensor.
Stock Issuances
Preferred Stock
On June 21, 2010, we issued warrants to acquire 1,000,000 shares of our Series A Convertible Preferred Stock at $0.001 per share, to each of William A. Hartman and Dr. Mitchell S. Felder. The shares are restricted in accordance with Rule 144. The issuances were exempt from registration pursuant to Section 4(2) of the Securities Act of 1933 since the shareholders were sophisticated investors, had access to the type of information that is normally available in a prospectus, and agreed not to resell or distribute their securities to the public.
The Preferred Stock is convertible, at the option of the holder, into one share of common stock for each share of Preferred Stock converted. The holders of our Preferred Stock also have 100 votes per share of Preferred Stock that they hold. It also contains protective provisions as follows:
The Company may not take any of the following actions without the approval of a majority of the holders of the outstanding Series A Convertible Preferred Stock: (i) effect a sale of all or substantially all of the Company’s assets or which results in the holders of the Company’s capital stock prior to the transaction owning less than fifty percent (50%) of the voting power of the Company’s capital stock after the transaction, (ii) alter or change the rights, preferences, or privileges of the Series A Convertible Preferred Stock, (iii) increase or decrease the number of authorized shares of Series A Convertible Preferred Stock, (iv) authorize the issuance of securities having a preference over or on par with the Series A Convertible Preferred Stock, or (v) effectuate a forward or reverse stock split or dividend of the Company’s common stock.
Common Stock
On December 23, 2010, we issued 500,000 shares of our common stock to Scott Barnes, as a founder, for consideration of $0.00001 per share. The shares are restricted in accordance with Rule 144. The issuances were exempt from registration pursuant to Section 4(2) of the Securities Act of 1933 since the shareholder was a sophisticated investor, had access to the type of information that is normally available in a prospectus, and agreed not to resell or distribute the securities to the public.
On June 21, 2010, we issued an aggregate of 10,000,000 shares of our common stock to our officers and directors, as founders, for consideration of $0.00001 per share. The shares are restricted in accordance with Rule 144. The issuances were exempt from registration pursuant to Section 4(2) of the Securities Act of 1933 since the shareholders were sophisticated investors, had access to the type of information that is normally available in a prospectus, and agreed not to resell or distribute their securities to the public.
DISCLOSURE OF COMMISSION POSITION ON INDEMNIFICATION FOR SECURITIES ACT LIABILITIES
Article 9 of our Articles of Incorporation provides that, the personal liability of the directors of the corporation is hereby eliminated to the fullest extent permitted by paragraph 1 of Section 78.037 of the General Corporation Law of the State of Nevada, as the same may be amended and supplemented.
Article 10 of our Articles of Incorporation provides that, the corporation shall, to the fullest extent permitted by Section 78.751 of the General Corporation Law of the State of Nevada, as the same may be amended and supplemented, indemnify any and all persons whom it shall have power to indemnify under said section from and against any and all expenses, liabilities, or other matters referred to in or covered by said section.
Article V of our Bylaws further addresses indemnification, including procedures for indemnification claims.
Insofar as indemnification for liabilities arising under the Securities Act of 1933 (the “Act”) may be permitted to directors, officers and controlling persons of the small business issuer pursuant to the foregoing provisions, or otherwise, the small business issuer has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable.
AVAILABLE INFORMATION
We are not subject to the reporting requirements of the Securities Exchange Act of 1934. We have filed with the Securities and Exchange Commission a registration statement on Form S-1, together with all amendments and exhibits thereto, under the Securities Act of 1933 with respect to the common stock offered hereby. This prospectus does not contain all of the information set forth in the registration statement and the exhibits and schedules thereto. Statements contained in this prospectus as to the contents of any contract or other document referred to are not necessarily complete and in each instance reference is made to the copy of such contract or other document filed as an exhibit to the registration statement, each such statement being qualified in all respects by such reference.
Copies of all or any part of the registration statement may be inspected without charge or obtained from the Public Reference Section of the Commission at 100 F Street, NE, Washington, DC 20549. The registration statement is also available through the Commission’s web site at the following address: http://www.sec.gov.
EXPERTS
The audited financial statements of Premier Biomedical, Inc. as of December 31, 2010 and for the period from May 10, 2010 (Inception) through December 31, 2010 appearing in this prospectus which is part of a registration statement have been so included in reliance on the report of M&K CPAS, PLLC, given on the authority of such firm as experts in accounting and auditing.
INDEX TO FINANCIAL STATEMENTS
Report of Independent Registered Public Accounting Firm
|
|
F-1
|
Balance Sheets as of December 31, 2010 (audited) and March 31, 2011 (unaudited)
|
|
F-2
|
Statements of Operations for the Three Months Ended March 31, 2011 (unaudited), the period from May 10, 2010 (inception) to December 31, 2010 (audited), and the period from May 10, 2010 (inception) to March 31, 2011 (audited)
|
|
F-3
|
Statements of Cash Flows for the Three Months Ended March 31, 2011 (unaudited), the period from May 10, 2010 (inception) to December 31, 2010 (audited), and the period from May 10, 2010 (inception) to March 31, 2011 (audited)
|
|
F-4
|
Statements of Stockholders’ Equity (Deficit) for the period from May 10, 2010 (inception) to December 31, 2010 (unaudited) and to March 31, 2011 (unaudited)
|
|
F-5
|
Notes to Financial Statements
|
|
F-6 to F-16
|
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors
Premier Biomedical, Inc.
(A Development Stage Company)
We have audited the accompanying balance sheet of Premier Biomedical, Inc. (A Development Stage Company) as of December 31, 2010, and the related statements of operations, stockholders' equity (deficit) and cash flows for the period from inception on May 10, 2010, through December 31, 2010. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company was not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Premier Biomedical, Inc. (A Development Stage Company) as of December 31, 2010, and the related statements of operations, stockholders' equity (deficit) and cash flows for the period from inception on May 10, 2010, through December 31, 2010, in conformity with accounting principles generally accepted in the United States of America.
The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 2 to the financial statements, the Company has an accumulated deficit of $13,720 and negative working capital of $58,705, which raises substantial doubt about its ability to continue as a going concern. Management’s plans concerning these matters are also described in Note 2. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
/s/ M&K CPAS, PLLC
Houston, Texas
http://www.mkacpas.com
June 13, 2011
PREMIER BIOMEDICAL, INC.
(A DEVELOPMENT STAGE COMPANY)
BALANCE SHEETS
|
|
March 31,
|
|
|
December 31,
|
|
|
|
2011
|
|
|
2010
|
|
|
|
(Unaudited)
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
Cash
|
|
$
|
57,829
|
|
|
$
|
373
|
|
Prepaid expenses
|
|
|
4,500
|
|
|
|
-
|
|
Total current assets
|
|
|
62,329
|
|
|
|
373
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
62,329
|
|
|
$
|
373
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
Accounts Payable
|
|
$
|
135
|
|
|
$
|
-
|
|
Accrued interest, related parties
|
|
|
134
|
|
|
|
74
|
|
Notes payable, related parties
|
|
|
3,355
|
|
|
|
2,355
|
|
Total current liabilities
|
|
|
3,624
|
|
|
|
2,429
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity (deficit):
|
|
|
|
|
|
|
|
|
Preferred stock, $0.001 par value, 10,000,000 shares
|
|
|
|
|
|
|
|
|
authorized, no shares issued and outstanding
|
|
|
-
|
|
|
|
-
|
|
Common stock, $0.00001 par value, 300,000,000 shares authorized,
|
|
|
|
|
|
|
|
|
11,223,200 and 10,000,000 shares issued and outstanding
|
|
|
|
|
|
|
|
|
at March 31, 2011 and December 31, 2010, respectively
|
|
|
112
|
|
|
|
100
|
|
Additional Paid in Capital
|
|
|
72,313
|
|
|
|
-
|
|
(Deficit) accumulated during development stage
|
|
|
(13,720
|
)
|
|
|
(2,156
|
)
|
Total stockholders' equity (deficit)
|
|
|
58,705
|
|
|
|
(2,056
|
)
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders' equity (deficit)
|
|
$
|
62,329
|
|
|
$
|
373
|
|
The accompanying notes are an integral part of these financial statements.
PREMIER BIOMEDICAL, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENTS OF OPERATIONS
|
|
For the Three
|
|
|
May 10, 2010
|
|
|
May 10, 2010
|
|
|
|
Months Ended
|
|
|
(inception) to
|
|
|
(inception) to
|
|
|
|
March 31, 2011
|
|
|
December 31, 2010
|
|
|
March 31, 2011
|
|
|
|
(Unaudited)
|
|
|
|
|
|
(Unaudited)
|
|
Revenue
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative
|
|
|
11,093
|
|
|
|
1,982
|
|
|
|
13,075
|
|
Professional fees
|
|
|
390
|
|
|
|
98
|
|
|
|
488
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses
|
|
|
11,483
|
|
|
|
2,080
|
|
|
|
13,563
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating loss
|
|
|
(11,483
|
)
|
|
|
(2,080
|
)
|
|
|
(13,563
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
(81
|
)
|
|
|
(76
|
)
|
|
|
(157
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before provision for income taxes
|
|
|
(11,564
|
)
|
|
|
(2,156
|
)
|
|
|
(13,720
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(11,564
|
)
|
|
$
|
(2,156
|
)
|
|
$
|
(13,720
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares
|
|
|
|
|
|
|
|
|
|
|
|
|
outstanding - basic and fully diluted
|
|
|
10,637,991
|
|
|
|
10,000,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) per share - basic and fully diluted
|
|
$
|
(0.00
|
)
|
|
$
|
(0.00
|
)
|
|
|
|
|
The accompanying notes are an integral part of these financial statements.
PREMIER BIOMEDICAL, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF STOCKHOLDERS' EQUITY (DEFICIT)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Deficit)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional
|
|
|
During
|
|
|
Total
|
|
|
|
Preferred Stock
|
|
|
Common Stock
|
|
|
Paid-In
|
|
|
Development
|
|
|
Stockholders'
|
|
|
|
Shares
|
|
|
Amount
|
|
|
Shares
|
|
|
Amount
|
|
|
Capital
|
|
|
Stage
|
|
|
Equity (Deficit)
|
|
Common stock sold to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
founders at $0.00001 per share
|
|
|
-
|
|
|
$
|
-
|
|
|
|
10,000,000
|
|
|
$
|
100
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss from May 10, 2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(inception) to December 31, 2010
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(2,156
|
)
|
|
|
(2,156
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, December 31, 2010
|
|
|
-
|
|
|
$
|
-
|
|
|
|
10,000,000
|
|
|
$
|
100
|
|
|
$
|
-
|
|
|
$
|
(2,156
|
)
|
|
$
|
(2,056
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock sold to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
founders at $0.00001 per share
|
|
|
-
|
|
|
|
-
|
|
|
|
500,000
|
|
|
|
5
|
|
|
|
-
|
|
|
|
-
|
|
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock sold at $0.10 per share
|
|
|
-
|
|
|
|
-
|
|
|
|
723,200
|
|
|
|
7
|
|
|
|
72,313
|
|
|
|
-
|
|
|
|
72,320
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss for the three months
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ended March 31, 2011
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
(11,564
|
)
|
|
|
(11,564
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, March 31, 2011 (Unaudited)
|
|
|
-
|
|
|
$
|
-
|
|
|
|
11,223,200
|
|
|
$
|
112
|
|
|
$
|
72,313
|
|
|
$
|
(13,720
|
)
|
|
$
|
58,705
|
|
The accompanying notes are an integral part of these financial statements.
PREMIER BIOMEDICAL, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
|
|
|
May 10, 2010
|
|
|
May 10, 2010
|
|
|
|
Months Ended
|
|
|
(inception) to
|
|
|
(inception) to
|
|
|
|
March 31, 2011
|
|
|
December 31, 2010
|
|
|
March 31, 2011
|
|
|
|
(Unaudited)
|
|
|
|
|
|
(Unaudited)
|
|
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
|
|
$
|
(11,564
|
)
|
|
$
|
(2,156
|
)
|
|
$
|
(13,720
|
)
|
Adjustments to reconcile net loss
|
|
|
|
|
|
|
|
|
|
|
|
|
to net cash used in operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Decrease (increase) in assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Prepaid expenses
|
|
|
(4,500
|
)
|
|
|
-
|
|
|
|
(4,500
|
)
|
Increase (decrease) in liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
135
|
|
|
|
-
|
|
|
|
135
|
|
Accrued interest, related parties
|
|
|
60
|
|
|
|
74
|
|
|
|
134
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in operating activities
|
|
|
(15,869
|
)
|
|
|
(2,082
|
)
|
|
|
(17,951
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from notes payable, related parties
|
|
|
1,000
|
|
|
|
2,355
|
|
|
|
3,355
|
|
Proceeds from sale of common stock
|
|
|
72,325
|
|
|
|
100
|
|
|
|
72,425
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by financing activities
|
|
|
73,325
|
|
|
|
2,455
|
|
|
|
75,780
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET CHANGE IN CASH
|
|
|
57,456
|
|
|
|
373
|
|
|
|
57,829
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH AT BEGINNING OF PERIOD
|
|
|
373
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH AT END OF PERIOD
|
|
$
|
57,829
|
|
|
$
|
373
|
|
|
$
|
57,829
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL INFORMATION:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest paid
|
|
$
|
21
|
|
|
$
|
2
|
|
|
$
|
23
|
|
Income taxes paid
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
The accompanying notes are an integral part of these financial statements.
Premier Biomedical, Inc.
(A Development Stage Company)
Notes to Financial Statements
December 31, 2010
(Information for the three month period ended
March 31, 2011 is unaudited)
Note 1 – Nature of Business and Significant Accounting Policies
Nature of Business
Premier Biomedical, Inc. (“the Company”) was incorporated in the state of Nevada on May 10, 2010 (“Inception”). The Company was formed to develop and market medications and procedures that address a significant number of the most highly visible health issues currently affecting mankind. The Company will market these medications and procedures to leading worldwide pharmaceutical firms via publication in medical journals and by direct contact.
These statements reflect all adjustments, consisting of normal recurring adjustments, which in the opinion of management are necessary for fair presentation of the information contained therein.
Development Stage Company
The Company is currently considered a development stage company as defined by FASB ASC 915-10-05. As a development stage enterprise, the Company discloses the deficit accumulated during the development stage and the cumulative statements of operations and cash flows from inception to the current balance sheet date. An entity remains in the development stage until such time as, among other factors, revenues have been realized. To date, the development stage of the Company’s operations consists of developing the business model and marketing concepts.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Cash and Cash Equivalents
We maintain cash balances in non-interest-bearing accounts, which do not currently exceed federally insured limits. For the purpose of the statements of cash flows, all highly liquid investments with an original maturity of three months or less are considered to be cash equivalents.
Fair Value of Financial Instruments
Under FASB ASC 820-10-05, the Financial Accounting Standards Board establishes a framework for measuring fair value in generally accepted accounting principles and expands disclosures about fair value measurements. This Statement reaffirms that fair value is the relevant measurement attribute. The adoption of this standard did not have a material effect on the Company’s financial statements as reflected herein. The carrying amounts of cash, prepaid expenses and accrued expenses reported on the balance sheet are estimated by management to approximate fair value primarily due to the short term nature of the instruments. The Company had no items that required fair value measurement on a recurring basis.
Basic and Diluted Loss Per Share
The basic net loss per common share is computed by dividing the net loss by the weighted average number of common shares outstanding. Diluted net loss per common share is computed by dividing the net loss adjusted on an “as if converted” basis, by the weighted average number of common shares outstanding plus potential dilutive securities. For the three months ended March 31, 2011 and the period from May 10, 2010 (inception) to December 31, 2010, potential dilutive securities had an anti-dilutive effect and were not included in the calculation of diluted net loss per common share.
Premier Biomedical, Inc.
(A Development Stage Company)
Notes to Financial Statements
December 31, 2010
(Information for the three month period ended
March 31, 2011 is unaudited)
The Company adopted FASB guidance on stock based compensation upon inception at May 10, 2010. Under FASB ASC 718-10-30-2, all share-based payments to employees, including grants of employee stock options, to be recognized in the income statement based on their fair values. Pro forma disclosure is no longer an alternative. The Company has not had any stock and stock options issued for services and compensation for the three months ended March 31, 2011 and the period from May 10, 2010 (inception) to December 31, 2010.
Revenue Recognition
Sales on fixed price contracts are recorded when services are earned, the earnings process is complete or substantially complete, and the revenue is measurable and collectability is reasonably assured. Provisions for discounts and rebates to customers, estimated returns and allowances, and other adjustments are provided for in the same period the related sales are recorded. The Company defers any revenue from sales in which payment has been received, but the earnings process has not occurred. No sales have yet commenced.
Advertising and Promotion
All costs associated with advertising and promoting products are expensed as incurred. These expenses were $-0- for the three months ended March 31, 2011 and the period from May 10, 2010 (inception) to December 31, 2010.
Income Taxes
Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. A valuation allowance is provided for significant deferred tax assets when it is more likely than not, that such asset will not be recovered through future operations.
Uncertain Tax Positions
In accordance with ASC 740, “Income Taxes” (“ASC 740”), the Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be capable of withstanding examination by the taxing authorities based on the technical merits of the position. These standards prescribe a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. These standards also provide guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition.
Various taxing authorities periodically audit the Company’s income tax returns. These audits include questions regarding the Company’s tax filing positions, including the timing and amount of deductions and the allocation of income to various tax jurisdictions. In evaluating the exposures connected with these various tax filing positions, including state and local taxes, the Company records allowances for probable exposures. A number of years may elapse before a particular matter, for which an allowance has been established, is audited and fully resolved. The Company has not yet undergone an examination by any taxing authorities.
The assessment of the Company’s tax position relies on the judgment of management to estimate the exposures associated with the Company’s various filing positions.
Premier Biomedical, Inc.
(A Development Stage Company)
Notes to Financial Statements
December 31, 2010
(Information for the three month period ended
March 31, 2011 is unaudited)
Recently Issued Accounting Pronouncements
In December 2010, the FASB issued ASU 2010-29, “Business Combinations (Topic 805): Disclosure of supplementary pro forma information for business combinations.” This update changes the disclosure of pro forma information for business combinations. These changes clarify that if a public entity presents comparative financial statements, the entity should disclose revenue and earnings of the combined entity as though the business combination that occurred during the current year had occurred as of the beginning of the comparable prior annual reporting period only. Also, the existing supplemental pro forma disclosures were expanded to include a description of the nature and amount of material, nonrecurring pro forma adjustments directly attributable to the business combination included in the reported pro forma revenue and earnings. These changes become effective for the Company beginning January 1, 2011. The Company’s adoption of this update did not have an impact on the Company’s financial condition or results of operations.
In December 2010, the FASB issued ASU 2010-28, “Intangible –Goodwill and Other (Topic 350): When to perform Step 2 of the goodwill impairment test for reporting units with zero or negative carrying amounts.” This update requires an entity to perform all steps in the test for a reporting unit whose carrying value is zero or negative if it is more likely than not (more than 50%) that a goodwill impairment exists based on qualitative factors, resulting in the elimination of an entity’s ability to assert that such a reporting unit’s goodwill is not impaired and additional testing is not necessary despite the existence of qualitative factors that indicate otherwise. These changes become effective for the Company beginning January 1, 2011. The adoption of this ASU did not have a material impact on our financial statements.
In April 2010, the FASB issued ASU No. 2010-18 regarding improving comparability by eliminating diversity in practice about the treatment of modifications of loans accounted for within pools under Subtopic 310-30 – Receivable – Loans and Debt Securities Acquired with Deteriorated Credit Quality (“Subtopic 310-30”). Furthermore, the amendments clarify guidance about maintaining the integrity of a pool as the unit of accounting for acquired loans with credit deterioration. Loans accounted for individually under Subtopic 310-30 continue to be subject to the troubled debt restructuring accounting provisions within Subtopic 310-40, Receivables—Troubled Debt Restructurings by Creditors. The amendments in this Update are effective for modifications of loans accounted for within pools under Subtopic 310-30 occurring in the first interim or annual period ending on or after July 15, 2010. The amendments are to be applied prospectively. Early adoption is permitted. The adoption of this ASU did not have a material impact on our financial statements.
In April 2010, the FASB issued ASU 2010-13, "Compensation—Stock Compensation (Topic 718) - Effect of Denominating the Exercise Price of a Share-Based Payment Award in the Currency of the Market in Which the Underlying Equity Security Trades (A consensus of the FASB Emerging Issues Task Force)" (“ASU 2010-13”). ASU 2010-13 clarifies that a share-based payment award with an exercise price denominated in the currency of a market in which a substantial portion of the entity’s equity securities trades should not be considered to contain a condition that is not a market, performance, or service condition. Therefore, such an award should not be classified as a liability if it otherwise qualifies as equity. This clarification of existing practice is effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2010, with early application permitted. The Company’s adoption of this update did not have an impact on the Company’s financial condition or results of operations.
In February 2010, the FASB issued ASU No. 2010-09 regarding subsequent events and amendments to certain recognition and disclosure requirements. Under this ASU, a public company that is a SEC filer, as defined, is not required to disclose the date through which subsequent events have been evaluated. This ASU is effective upon the issuance of this ASU. The adoption of this ASU did not have a material impact on our financial statements.
In January 2010, the FASB issued ASU No. 2010-06 regarding fair value measurements and disclosures and improvement in the disclosure about fair value measurements. This ASU requires additional disclosures regarding significant transfers in and out of Levels 1 and 2 of fair value measurements, including a description of the reasons for the transfers. Further, this ASU requires additional disclosures for the activity in Level 3 fair value measurements, requiring presentation of information about purchases, sales, issuances, and settlements in the reconciliation for fair value measurements. This ASU is effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years. The adoption of this ASU did not have a material impact on our financial statements.
Premier Biomedical, Inc.
(A Development Stage Company)
Notes to Financial Statements
December 31, 2010
(Information for the three month period ended
March 31, 2011 is unaudited)
In June 2009, the Financial Accounting Standards Board (“FASB”) issued the FASB Accounting Standards Codification (the “ASC”). The ASC has become the single source of non-governmental accounting principles generally accepted in the United States (“GAAP”) recognized by the FASB in the preparation of financial statements. The ASC does not supersede the rules or regulations of the Securities and Exchange Commission (“SEC”), therefore, the rules and interpretive releases of the SEC continue to be additional sources of GAAP for the Company. The Company adopted the ASC upon inception on May 10, 2010. The ASC does not change GAAP and did not have an effect on the Company’s financial position, results of operations or cash flows.
In May 2009, the FASB issued ASC 855-10 entitled “Subsequent Events”. Companies are now required to disclose the date through which subsequent events have been evaluated by management. Public entities (as defined) must conduct the evaluation as of the date the financial statements are issued, and provide disclosure that such date was used for this evaluation. ASC 855-10 provides that financial statements are considered “issued” when they are widely distributed for general use and reliance in a form and format that complies with GAAP. ASC 855-10 is effective for interim and annual periods ending after June 15, 2009 and must be applied prospectively. The adoption of ASC 855-10 did not have a significant effect on the Company’s financial statements. In connection with preparing the accompanying financial statements, management evaluated subsequent events through the date that such financial statements were issued (filed with the Securities and Exchange Commission).
Note 2 – Going Concern
As shown in the accompanying financial statements, the Company has no revenues, incurred net losses from operations resulting in an accumulated deficit of $13,720 and negative working capital of $58,705 as of March 31, 2011. These factors raise substantial doubt about the Company’s ability to continue as a going concern. Management is actively pursuing new ventures to increase revenues. In addition, the Company is currently seeking additional sources of capital to fund short term operations. The Company, however, is dependent upon its ability to secure equity and/or debt financing and there are no assurances that the Company will be successful, therefore, without sufficient financing it would be unlikely for the Company to continue as a going concern.
The financial statements do not include any adjustments that might result from the outcome of any uncertainty as to the Company’s ability to continue as a going concern. The financial statements also do not include any adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern.
Note 3 – Related Party
On December 31, 2010 the Company received an unsecured loan in the amount of $1,178, bearing interest at 8% and due on demand from the Company’s CEO.
On December 31, 2010 the Company received unsecured loans in the amount of $1,177, bearing interest at 8% and due on demand from the Company’s Chairman of the Board.
Premier Biomedical, Inc.
(A Development Stage Company)
Notes to Financial Statements
December 31, 2010
(Information for the three month period ended
March 31, 2011 is unaudited)
On March 31, 2010 the Company received an unsecured loan in the amount of $500, bearing interest at 8% and due on demand from the Company’s CEO.
On March 31, 2010 the Company received an unsecured loan in the amount of $500, bearing interest at 8% and due on demand from the Company’s Chairman of the Board.
Common Stock
On June 21, 2010, the Company sold 3,000,000 founder’s shares at the par value of $0.00001 per share, along with warrants to purchase 1,000,000 shares of series A convertible preferred stock at $0.001 per share over a ten year period from the date of issuance and warrants to purchase 17,000,000 shares of common stock at $0.00001 per share over a ten year period from the date of issuance, in exchange for proceeds of $30 to the Company’s CEO.
On June 21, 2010, the Company sold 3,000,000 founder’s shares at the par value of $0.00001 per share, along with warrants to purchase 1,000,000 shares of series A convertible preferred stock at $0.001 per share over a ten year period from the date of issuance and warrants to purchase 17,000,000 shares of common stock at $0.00001 per share over a ten year period from the date of issuance, in exchange for proceeds of $30 to the Company’s Chairman of the Board.
On June 21, 2010, the Company sold a total of 4,000,000 founder’s shares at the par value of $0.00001 per share in exchange for total proceeds of $40 to four of the Company’s directors.
On January 20, 2011, the Company sold 500,000 founder’s shares at the par value of $0.00001 per share in exchange for proceeds of $5 to a newly appointed director.
Note 4 – Notes Payable, Related Parties
On December 31, 2010 the Company received an unsecured loan in the amount of $1,178, bearing interest at 8% and due on demand from the Company’s CEO.
On December 31, 2010 the Company received unsecured loans in the amount of $1,177, bearing interest at 8% and due on demand from the Company’s Chairman of the Board.
On March 31, 2010 the Company received an unsecured loan in the amount of $500, bearing interest at 8% and due on demand from the Company’s CEO.
On March 31, 2010 the Company received an unsecured loan in the amount of $500, bearing interest at 8% and due on demand from the Company’s Chairman of the Board.
Note 5 – Stockholders’ Equity
On May 10, 2010, the founders of the Company established 300,000,000 authorized shares of $0.00001 par value common stock. Additionally, the Company’s founders established 10,000,000 authorized shares of $0.0001 par value preferred stock.
Common Stock
On January 20, 2011, the Company sold 500,000 founder’s shares at the par value of $0.00001 per share in exchange for proceeds of $5 to a newly appointed director.
Premier Biomedical, Inc.
(A Development Stage Company)
Notes to Financial Statements
December 31, 2010
(Information for the three month period ended
March 31, 2011 is unaudited)
On February 28, 2011, the Company sold a total of 723,200 shares of the Company’s common stock at $0.10 per share, along with warrants to purchase a total of 723,200 shares of common stock at $0.10 per share over a two year period beginning one year from the date the Company begins trading on a public stock exchange, in exchange for total proceeds of $72,320 to a total of eighty five independent investors.
On June 21, 2010, the Company sold 3,000,000 founder’s shares at the par value of $0.00001 per share, along with warrants to purchase 1,000,000 shares of series A convertible preferred stock at $0.001 per share over a ten year period from the date of issuance and warrants to purchase 17,000,000 shares of common stock at $0.00001 per share over a ten year period from the date of issuance, in exchange for proceeds of $30 to the Company’s CEO.
On June 21, 2010, the Company sold 3,000,000 founder’s shares at the par value of $0.00001 per share, along with warrants to purchase 1,000,000 shares of series A convertible preferred stock at $0.001 per share over a ten year period from the date of issuance and warrants to purchase 17,000,000 shares of common stock at $0.00001 per share over a ten year period from the date of issuance, in exchange for proceeds of $30 to the Company’s Chairman of the Board.
On June 21, 2010, the Company sold a total of 4,000,000 founder’s shares at the par value of $0.00001 per share in exchange for total proceeds of $40 to four of the Company’s directors.
Note 6 – Series A Convertible Preferred Stock Warrants
Series A Convertible Preferred Stock Warrants Granted
On June 21, 2010 the Company issued warrants to purchase 1,000,000 shares of series A convertible preferred stock at $0.001 per share over a ten year period from the date of issuance, in exchange for proceeds of $30 in conjunction with the sale of 3,000,000 shares of founder’s shares of common stock to the Company’s CEO.
On June 21, 2010 the Company issued warrants to purchase 1,000,000 shares of series A convertible preferred stock at $0.001 per share over a ten year period from the date of issuance, in exchange for proceeds of $30 in conjunction with the sale of 3,000,000 shares of founder’s shares of common stock to the Company’s Chairman of the Board.
Series A Preferred Stock Warrants Cancelled
No series A preferred stock warrants were cancelled during the three months ended March 31, 2011 and the period from May 10, 2010 (inception) to December 31, 2010.
Series A Preferred Stock Warrants Expired
No series A preferred stock warrants were expired during the three months ended March 31, 2011 and the period from May 10, 2010 (inception) to December 31, 2010.
Series A Preferred Stock Warrants Exercised
No series A preferred stock warrants were exercised during the three months ended March 31, 2011 and the period from May 10, 2010 (inception) to December 31, 2010.
Premier Biomedical, Inc.
(A Development Stage Company)
Notes to Financial Statements
December 31, 2010
(Information for the three month period ended
March 31, 2011 is unaudited)
The following is a summary of information about the Series A Preferred Stock Warrants outstanding at March 31, 2011.
|
|
|
Shares Underlying
|
|
Shares Underlying Warrants Outstanding
|
|
|
Warrants Exercisable
|
|
|
|
|
|
|
Weighted
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares
|
|
Average
|
|
Weighted
|
|
|
Shares
|
|
|
Weighted
|
|
Range of
|
|
|
Underlying
|
|
Remaining
|
|
Average
|
|
|
Underlying
|
|
|
Average
|
|
Exercise
|
|
|
Warrants
|
|
Contractual
|
|
Exercise
|
|
|
Warrants
|
|
|
Exercise
|
|
Prices
|
|
|
Outstanding
|
|
Life
|
|
Price
|
|
|
Exercisable
|
|
|
Price
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
0.001
|
|
|
|
2,000,000
|
|
9.2 years
|
|
$
|
0.001
|
|
|
|
2,000,000
|
|
|
$
|
0.001
|
|
The following is a summary of information about the Series A Preferred Stock Warrants outstanding at December 31, 2010.
|
|
|
|
|
|
|
|
|
|
Shares Underlying
|
|
Shares Underlying Warrants Outstanding
|
|
|
Warrants Exercisable
|
|
|
|
|
|
|
Weighted
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares
|
|
Average
|
|
Weighted
|
|
|
Shares
|
|
|
Weighted
|
|
Range of
|
|
|
Underlying
|
|
Remaining
|
|
Average
|
|
|
Underlying
|
|
|
Average
|
|
Exercise
|
|
|
Warrants
|
|
Contractual
|
|
Exercise
|
|
|
Warrants
|
|
|
Exercise
|
|
Prices
|
|
|
Outstanding
|
|
Life
|
|
Price
|
|
|
Exercisable
|
|
|
Price
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
0.001
|
|
|
|
2,000,000
|
|
9.5 years
|
|
$
|
0.001
|
|
|
|
2,000,000
|
|
|
$
|
0.001
|
|
The fair value of each warrant grant is estimated on the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions used for grants under the fixed option plan:
|
|
March 31,
|
|
|
December 31,
|
|
|
|
2011
|
|
|
2010
|
|
|
|
|
|
|
|
|
Average risk-free interest rates
|
|
|
1.21
|
%
|
|
|
1.21
|
%
|
Average expected life (in years)
|
|
|
5.0
|
|
|
|
5.0
|
|
The Black-Scholes option pricing model was developed for use in estimating the fair value of short-term traded options that have no vesting restrictions and are fully transferable. In addition, option valuation models require the input of highly subjective assumptions including expected stock price volatility. Because the Company’s series A preferred stock warrants have characteristics significantly different from those of traded options and because changes in the subjective input assumptions can materially affect the fair value estimate, in management’s opinion the existing models do not necessarily provide a reliable single measure of the fair value of its series A preferred stock warrants. During the three months ended March 31, 2011 and the period from May 10, 2010 (inception) to December 31, 2010, there were no warrants granted with an exercise price below the fair value of the underlying stock at the grant date.
The weighted average fair value of warrants granted with exercise prices at the current fair value of the underlying stock during the period from May 10, 2010 (inception) to December 31, 2010 was approximately $0.001 per warrant, and there were no series A preferred stock warrants granted during the three months ended March 31, 2011.
Premier Biomedical, Inc.
(A Development Stage Company)
Notes to Financial Statements
December 31, 2010
(Information for the three month period ended
March 31, 2011 is unaudited)
The following is a summary of activity of outstanding series A preferred stock warrants:
|
|
|
|
|
Weighted
|
|
|
|
|
|
|
Average
|
|
|
|
Number
|
|
|
Exercise
|
|
|
|
of Shares
|
|
|
Price
|
|
|
|
|
|
|
|
|
Balance, May 10, 2010 (inception)
|
|
|
-
|
|
|
$
|
-
|
|
Options cancelled
|
|
|
-
|
|
|
|
-
|
|
Options granted
|
|
|
2,000,000
|
|
|
|
0.001
|
|
Options exercised
|
|
|
-
|
|
|
|
-
|
|
Balance, December 31, 2010
|
|
|
2,000,000
|
|
|
$
|
0.001
|
|
Options cancelled
|
|
|
-
|
|
|
|
-
|
|
Options granted
|
|
|
-
|
|
|
|
-
|
|
Options exercised
|
|
|
-
|
|
|
|
-
|
|
Balance, March 31, 2011
|
|
|
2,000,000
|
|
|
$
|
0.001
|
|
|
|
|
|
|
|
|
|
|
Exercisable, March 31, 2011
|
|
|
2,000,000
|
|
|
$
|
0.001
|
|
Note 7 – Common Stock Warrants
Common Stock Warrants Granted (2011)
On February 28, 2011 the Company granted warrants to purchase a total of 723,200 shares of common stock at $0.10 per share over a two year period beginning one year from the date the Company begins trading on a public stock exchange, in exchange for total proceeds of $72,320 in conjunction with the sale of 723,200 shares of common stock to a total of eighty five independent investors.
Common Stock Warrants Granted (2010)
On June 21, 2010 the Company issued warrants to purchase 17,000,000 shares of common stock at $0.00001 per share over a ten year period from the date of issuance, in exchange for proceeds of $30 in conjunction with the sale of 3,000,000 founder’s shares of common stock to the Company’s CEO.
On June 21, 2010 the Company issued warrants to purchase 17,000,000 shares of common stock at $0.00001 per share over a ten year period from the date of issuance, in exchange for proceeds of $30 in conjunction with the sale of 3,000,000 founder’s shares of common stock to the Company’s Chairman of the Board.
On June 21, 2010 the Company issued warrants to purchase 2,500,000 shares of common stock at $0.00001 per share over a ten year period from the date of issuance to the Company’s securities attorney, as an offering cost for the sale of a total of 10,000,000 founder’s shares of common stock to the Company’s Officers and Directors.
Common Stock Warrants Cancelled
No warrants were cancelled during the three months ended March 31, 2011 and the period from May 10, 2010 (inception) to December 31, 2010.
Common Stock Warrants Expired
No warrants expired during the three months ended March 31, 2011 and the period from May 10, 2010 (inception) to December 31, 2010.
Common Stock Warrants Exercised
No options were exercised during the three months ended March 31, 2011 and the period from May 10, 2010 (inception) to December 31, 2010.
Premier Biomedical, Inc.
(A Development Stage Company)
Notes to Financial Statements
December 31, 2010
(Information for the three month period ended
March 31, 2011 is unaudited)
The following is a summary of information about the Common Stock Warrants outstanding at March 31, 2011.
|
|
|
|
|
|
|
|
|
|
Shares Underlying
|
|
Shares Underlying Warrants Outstanding
|
|
|
Warrants Exercisable
|
|
|
|
|
|
|
Weighted
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares
|
|
Average
|
|
Weighted
|
|
|
Shares
|
|
|
Weighted
|
|
Range of
|
|
|
Underlying
|
|
Remaining
|
|
Average
|
|
|
Underlying
|
|
|
Average
|
|
Exercise
|
|
|
Warrants
|
|
Contractual
|
|
Exercise
|
|
|
Warrants
|
|
|
Exercise
|
|
Prices
|
|
|
Outstanding
|
|
Life
|
|
Price
|
|
|
Exercisable
|
|
|
Price
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
0.00001 – 0.10
|
|
|
|
37,223,200
|
|
9.2 years
|
|
$
|
0.00195
|
|
|
|
36,500,000
|
|
|
$
|
0.00001
|
|
The following is a summary of information about the Common Stock Warrants outstanding at December 31, 2010.
|
|
|
|
|
|
|
|
|
|
Shares Underlying
|
|
Shares Underlying Warrants Outstanding
|
|
|
Warrants Exercisable
|
|
|
|
|
|
|
Weighted
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares
|
|
Average
|
|
Weighted
|
|
|
Shares
|
|
|
Weighted
|
|
Range of
|
|
|
Underlying
|
|
Remaining
|
|
Average
|
|
|
Underlying
|
|
|
Average
|
|
Exercise
|
|
|
Warrants
|
|
Contractual
|
|
Exercise
|
|
|
Warrants
|
|
|
Exercise
|
|
Prices
|
|
|
Outstanding
|
|
Life
|
|
Price
|
|
|
Exercisable
|
|
|
Price
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
0.00001
|
|
|
|
36,500,000
|
|
9.5 years
|
|
$
|
0.00001
|
|
|
|
36,500,000
|
|
|
$
|
0.00001
|
|
The fair value of each warrant grant is estimated on the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions used for grants under the fixed option plan:
|
|
March 31,
|
|
|
December 31,
|
|
|
|
2011
|
|
|
2010
|
|
|
|
|
|
|
|
|
Average risk-free interest rates
|
|
|
1.18
|
%
|
|
|
1.21
|
%
|
Average expected life (in years)
|
|
|
5.0
|
|
|
|
5.0
|
|
The Black-Scholes option pricing model was developed for use in estimating the fair value of short-term traded options that have no vesting restrictions and are fully transferable. In addition, option valuation models require the input of highly subjective assumptions including expected stock price volatility. Because the Company’s common stock warrants have characteristics significantly different from those of traded options and because changes in the subjective input assumptions can materially affect the fair value estimate, in management’s opinion the existing models do not necessarily provide a reliable single measure of the fair value of its common stock warrants. During the three months ended March 31, 2011 and the period from May 10, 2010 (inception) to December 31, 2010, there were no warrants granted with an exercise price below the fair value of the underlying stock at the grant date.
Premier Biomedical, Inc.
(A Development Stage Company)
Notes to Financial Statements
December 31, 2010
(Information for the three month period ended
March 31, 2011 is unaudited)
The weighted average fair value of warrants granted with exercise prices at the current fair value of the underlying stock during the period from May 10, 2010 (inception) to December 31, 2010 was approximately $0.00001 per warrant, and approximately $0.10 per warrant granted during the three months ended March 31, 2011.
The following is a summary of activity of outstanding common stock warrants:
|
|
|
|
|
Weighted
|
|
|
|
|
|
|
Average
|
|
|
|
Number
|
|
|
Exercise
|
|
|
|
of Shares
|
|
|
Price
|
|
|
|
|
|
|
|
|
Balance, May 10, 2010 (inception)
|
|
|
-
|
|
|
$
|
-
|
|
Options cancelled
|
|
|
-
|
|
|
|
-
|
|
Options granted
|
|
|
36,500,000
|
|
|
|
0.00001
|
|
Options exercised
|
|
|
-
|
|
|
|
-
|
|
Balance, December 31, 2010
|
|
|
36,500,000
|
|
|
$
|
0.00001
|
|
Options cancelled
|
|
|
-
|
|
|
|
-
|
|
Options granted
|
|
|
723,200
|
|
|
|
0.10
|
|
Options exercised
|
|
|
-
|
|
|
|
-
|
|
Balance, March 31, 2011
|
|
|
37,223,200
|
|
|
$
|
0.00195
|
|
|
|
|
|
|
|
|
|
|
Exercisable, March 31, 2011
|
|
|
36,500,000
|
|
|
$
|
0.00001
|
|
Note 8 – Income Taxes
The Company accounts for income taxes under FASB ASC 740-10, which requires use of the liability method. FASB ASC 740-10-25 provides that deferred tax assets and liabilities are recorded based on the differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes, referred to as temporary differences.
For the three months ended March 31, 2011 and the period from May 10, 2010 (inception) to December 31, 2010, the Company incurred a net operating loss and, accordingly, no provision for income taxes has been recorded. In addition, no benefit for income taxes has been recorded due to the uncertainty of the realization of any tax assets. At March 31, 2011 and December 31, 2010, the Company had approximately $13,720 and $2,156 of federal net operating losses, respectively. The net operating loss carry forwards, if not utilized, will begin to expire in 2031.
The components of the Company’s deferred tax asset are as follows:
|
|
March 31,
|
|
|
December 31,
|
|
|
|
2011
|
|
|
2010
|
|
Deferred tax assets:
|
|
|
|
|
|
|
Net operating loss carry forwards
|
|
$
|
4,800
|
|
|
$
|
755
|
|
|
|
|
|
|
|
|
|
|
Net deferred tax assets before valuation allowance
|
|
|
4,800
|
|
|
|
755
|
|
Less: Valuation allowance
|
|
|
(4,800
|
)
|
|
|
(755
|
)
|
Net deferred tax assets
|
|
$
|
-
|
|
|
$
|
-
|
|
Based on the available objective evidence, including the Company’s history of its loss, management believes it is more likely than not that the net deferred tax assets will not be fully realizable. Accordingly, the Company provided for a full valuation allowance against its net deferred tax assets at March 31, 2011 and December 31, 2010, respectively.
Premier Biomedical, Inc.
(A Development Stage Company)
Notes to Financial Statements
December 31, 2010
(Information for the three month period ended
March 31, 2011 is unaudited)
A reconciliation between the amounts of income tax benefit determined by applying the applicable U.S. and State statutory income tax rate to pre-tax loss is as follows:
|
|
March 31,
|
|
|
December 31,
|
|
|
|
2011
|
|
|
2010
|
|
|
|
|
|
|
|
|
Federal and state statutory rate
|
|
|
35
|
%
|
|
|
35
|
%
|
Change in valuation allowance on deferred tax assets
|
|
|
(35
|
)%
|
|
|
(35
|
)%
|
In accordance with FASB ASC 740, the Company has evaluated its tax positions and determined there are no uncertain tax positions.
Note 9 – Subsequent Events
On April 19, 2011, the Company sold a total of 106,000 shares of common stock at $0.25 per share amongst three individual investors in exchange for total proceeds of $26,500.
On June 3, 2011, the Company sold a total of 122,000 shares of common stock at $0.25 per share amongst fifteen individual investors in exchange for total proceeds of $30,500.
PART II – INFORMATION NOT REQUIRED IN PROSPECTUS
OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION
We will pay all expenses in connection with the registration and sale of the common stock by the selling stockholders, who may be deemed to be an underwriter in connection with their offering of shares. The estimated expenses of issuance and distribution are set forth below:
Registration Fees
|
|
Approximately
|
|
$
|
100
|
|
Transfer Agent Fees
|
|
Approximately
|
|
|
500
|
|
Costs of Printing and Engraving
|
|
Approximately
|
|
|
500
|
|
Legal Fees
|
|
Approximately
|
|
|
30,000
|
|
Accounting and Audit Fees
|
|
Approximately
|
|
|
7,500
|
|
Total
|
|
|
|
$
|
38,600
|
|
INDEMNIFICATION OF DIRECTORS AND OFFICERS
Article 9 of our Articles of Incorporation provides that, the personal liability of the directors of the corporation is hereby eliminated to the fullest extent permitted by paragraph 1 of Section 78.037 of the General Corporation Law of the State of Nevada, as the same may be amended and supplemented.
Article 10 of our Articles of Incorporation provides that, the corporation shall, to the fullest extent permitted by Section 78.751 of the General Corporation Law of the State of Nevada, as the same may be amended and supplemented, indemnify any and all persons whom it shall have power to indemnify under said section from and against any and all expenses, liabilities, or other matters referred to in or covered by said section.
Article V of our Bylaws further addresses indemnification, including procedures for indemnification claims.
Insofar as indemnification for liabilities arising under the Securities Act of 1933 (the “Act”) may be permitted to directors, officers and controlling persons of the small business issuer pursuant to the foregoing provisions, or otherwise, the small business issuer has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable.
RECENT SALES OF UNREGISTERED SECURITIES
Common Stock
On June 3, 2011, we issued an aggregate of 228,000 shares of our common stock to eighteen (18) investors, for consideration of $0.25 per share, or $57,000. The shares are restricted securities in accordance with Rule 144. The issuances were exempt from registration pursuant to Rule 504 of Regulation D promulgated under the Securities Act of 1933. The investors had access to the type of information that is normally available in a prospectus, and agreed not to resell or distribute their securities to the public.
On March 9, 2011, we issued an aggregate of 723,200 shares of our common stock, plus warrants to acquire an additional 723,200 shares of our common stock, to eighty-five (85) investors, for consideration of $0.10 per share, or $72,320. The shares, and the shares of common stock underlying the exercise of the warrants, are restricted securities in accordance with Rule 144. The issuances were exempt from registration pursuant to Rule 504 of Regulation D promulgated under the Securities Act of 1933. The investors had access to the type of information that is normally available in a prospectus, and agreed not to resell or distribute their securities to the public.
On June 21, 2010, we issued an aggregate of 10,000,000 shares of our common stock to our officers and directors, as founders, for consideration of $0.00001 per share. The shares are restricted in accordance with Rule 144. The issuances were exempt from registration pursuant to Section 4(2) of the Securities Act of 1933 since the shareholders were sophisticated investors, had access to the type of information that is normally available in a prospectus, and agreed not to resell or distribute their securities to the public.
On June 21, 2010, we issued warrants to acquire 2,500,000 shares of our common stock at $0.00001 per share, to The Lebrecht Group, APLC, our legal counsel, in exchange for services rendered in connection with our private placement offering. The shares are restricted in accordance with Rule 144. The issuances were exempt from registration pursuant to Section 4(2) of the Securities Act of 1933 since the shareholder was a sophisticated investor, had access to the type of information that is normally available in a prospectus, and agreed not to resell or distribute the securities to the public.
On December 23, 2010, we issued 500,000 shares of our common stock to Scott Barnes, as a founder, for consideration of $0.00001 per share. The shares are restricted in accordance with Rule 144. The issuances were exempt from registration pursuant to Section 4(2) of the Securities Act of 1933 since the shareholder was a sophisticated investor, had access to the type of information that is normally available in a prospectus, and agreed not to resell or distribute the securities to the public.
Preferred Stock
On June 21, 2010, we issued warrants to acquire 1,000,000 shares of our Series A Convertible Preferred Stock at $0.001 per share, to each of William A. Hartman and Dr. Mitchell S. Felder. The shares are restricted in accordance with Rule 144. The issuances were exempt from registration pursuant to Section 4(2) of the Securities Act of 1933 since the shareholders were sophisticated investors, had access to the type of information that is normally available in a prospectus, and agreed not to resell or distribute their securities to the public.
The Preferred Stock is convertible, at the option of the holder, into one share of common stock for each share of Preferred Stock converted. The holders of our Preferred Stock also have 100 votes per share of Preferred Stock that they hold. It also contains protective provisions as follows:
The Company may not take any of the following actions without the approval of a majority of the holders of the outstanding Series A Convertible Preferred Stock: (i) effect a sale of all or substantially all of the Company’s assets or which results in the holders of the Company’s capital stock prior to the transaction owning less than fifty percent (50%) of the voting power of the Company’s capital stock after the transaction, (ii) alter or change the rights, preferences, or privileges of the Series A Convertible Preferred Stock, (iii) increase or decrease the number of authorized shares of Series A Convertible Preferred Stock, (iv) authorize the issuance of securities having a preference over or on par with the Series A Convertible Preferred Stock, or (v) effectuate a forward or reverse stock split or dividend of the Company’s common stock.
EXHIBITS
3.1
|
|
Articles of Incorporation of Premier Biomedical, Inc.
|
|
|
|
3.2
|
|
Bylaws of Premier Biomedical, Inc.
|
|
|
|
3.3
|
|
Certificate of Designation of Series A Convertible Preferred Stock
|
|
|
|
5.1*
|
|
Legal Opinion of The Lebrecht Group, APLC
|
|
|
|
10.1
|
|
License Agreement dated May 12, 2010 with Altman Enterprises, Inc.
|
|
|
|
10.2
|
|
License Agreement dated May 12, 2010 with Marv Enterprises, LLC.
|
|
|
|
10.3
|
|
Preferred Stock Purchase Warrant issued to Mitchell Felder
|
|
|
|
10.4
|
|
Preferred Stock Purchase Warrant issued to William A. Hartman
|
|
|
|
10.5
|
|
Common Stock Purchase Warrant issued to Mitchell Felder
|
|
|
|
10.6
|
|
Common Stock Purchase Warrant issued to William A. Hartman
|
|
|
|
10.7
|
|
Common Stock Purchase Warrant issued to The Lebrecht Group, APLC
|
|
|
|
10.8
|
|
Promissory Note issued to William A. Hartman dated December 31, 2010
|
|
|
|
10.9
|
|
Promissory Note issued to Mitchell Felder dated December 31, 2010
|
|
|
|
10.10
|
|
Promissory Note issued to William A. Hartman dated March 31, 2011
|
|
|
|
10.11
|
|
Promissory Note issued to Mitchell Felder dated March 31, 2011
|
|
|
|
10.12
|
|
Form of Warrant Sold in Private Placement
|
|
|
|
23.1
|
|
Consent of
M&K CPAS, PLLC
|
|
|
|
23.2*
|
|
Consent of The Lebrecht Group, APLC (included in Exhibit 5.1)
|
|
|
|
*
|
To be filed in a future amendment.
|
Undertakings
A. Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to our directors, officers and controlling persons pursuant to the foregoing provisions, or otherwise, we have been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities Act of 1933 and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by us of expenses incurred or paid by our director, officer or controlling person in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, we will, unless in the opinion of our counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act of 1933 and will be governed by the final adjudication of such issue.
B. The undersigned registrant hereby undertakes:
|
(1)
|
To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:
|
|
(a)
|
To include any prospectus required by Section 10(a)(3) of the Securities Act of 1933;
|
|
(b)
|
To reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) (Section 230.424(b) of Regulation S-K) if, in the aggregate, the changes in volume and price represent no more than a 20% change in the maximum aggregate offering price set forth in the “Calculation of Registration Fee” table in the effective registration statement; and
|
|
(c)
|
To include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement.
|
|
(2)
|
That, for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of the securities at that time shall be deemed to be the initial bona fide offering thereof.
|
|
(3)
|
To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.
|
|
(4)
|
That, for the purpose of determining liability under the Securities Act of 1933 to any purchaser:
|
(i) If the registrant is relying on Rule 430B (§230.430B of this chapter):
(A) Each prospectus filed by the registrant pursuant to Rule 424(b)(3) (§230.424(b)(3) of this chapter) shall be deemed to be part of the registration statement as of the date the filed prospectus was deemed part of and included in the registration statement; and
(B) Each prospectus required to be filed pursuant to Rule 424(b)(2), (b)(5), or (b)(7) (§230.424(b)(2), (b)(5), or (b)(7) of this chapter) as part of a registration statement in reliance on Rule 430B relating to an offering made pursuant to Rule 415(a)(1)(i), (vii), or (x) (§230.415(a)(1)(i), (vii), or (x) of this chapter) for the purpose of providing the information required by section 10(a) of the Securities Act of 1933 shall be deemed to be part of and included in the registration statement as of the earlier of the date such form of prospectus is first used after effectiveness or the date of the first contract of sale of securities in the offering described in the prospectus. As provided in Rule 430B, for liability purposes of the issuer and any person that is at that date an underwriter, such date shall be deemed to be a new effective date of the registration statement relating to the securities in the registration statement to which that prospectus relates, and the offering of such securities at that time shall be deemed to be the initial
bona fide
offering thereof.
Provided, however,
that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such effective date, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such effective date; or
(ii) If the registrant is subject to Rule 430C (§230.430C of this chapter), each prospectus filed pursuant to Rule 424(b) as part of a registration statement relating to an offering, other than registration statements relying on Rule 430B or other than prospectuses filed in reliance on Rule 430A (§230.430A of this chapter), shall be deemed to be part of and included in the registration statement as of the date it is first used after effectiveness.
Provided, however,
that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such date of first use.
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(5)
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That, for the purpose of determining liability of the registrant under the Securities Act of 1933 to any purchaser in the initial distribution of the securities:
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(i) The undersigned registrant undertakes that in a primary offering of securities of the undersigned registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser:
(A) Any preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424 (§230.424 of this chapter);
(B) Any free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant;
(C) The portion of any other free writing prospectus relating to the offering containing material information about the undersigned registrant or its securities provided by or on behalf of the undersigned registrant; and
(D) Any other communication that is an offer in the offering made by the undersigned registrant to the purchaser.
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, in the City of Port Richey, State of Florida.
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Premier Biomedical, Inc.
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Dated: June 13, 2011
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/s/ William A. Hartman
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By:
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William A. Hartman
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Its:
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Chief Executive Officer
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Pursuant to the requirements of the Securities Act of 1933, this registration statement has been signed by the following persons in the capacities and on the dates stated.
Dated: June 13, 2011
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/s/ William A. Hartman
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By:
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William A. Hartman, President and
Director
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Dated: June 13, 2011
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/s/ Mitchell S. Felder
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By:
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Mitchell S. Felder, Chairman of the Board
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Dated: June 13, 2011
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/s/ Heidi H. Carl
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By:
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Heidi H. Carl, Secretary and Director
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Dated: June 13, 2011
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/s/ Ramon D. Foltz
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By:
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Ramon D. Foltz, Director
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Dated: June 13, 2011
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/s/ Jay Rosen
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By:
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Jay Rosen, Director
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Dated: June 13, 2011
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/s/ Justin Felder
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By:
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Justin Felder, Director
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Dated: June 13, 2011
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/s/ Scott Barnes
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By:
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Scott Barnes, Director
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YOU MAY RELY ON THE INFORMATION CONTAINED IN THIS PROSPECTUS. WE HAVE NOT AUTHORIZED ANYONE TO PROVIDE INFORMATION DIFFERENT FROM THAT CONTAINED IN THIS PROSPECTUS. NEITHER THE DELIVERY OF THIS PROSPECTUS NOR SALE OF COMMON STOCK MEANS THAT INFORMATION CONTAINED IN THIS PROSPECTUS IS CORRECT AFTER THE DATE OF THIS PROSPECTUS. THIS PROSPECTUS IS NOT AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY THESE SHARES OF THE COMMON STOCK IN ANY CIRCUMSTANCES UNDER WHICH THE OFFER OR SOLICITATION IS UNLAWFUL.
TABLE OF CONTENTS
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Page
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Prospectus Summary
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2
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Corporate Information
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2
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Risk Factors
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4
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Use of Proceeds
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13
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Determination of Offering Price
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14
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Selling Security Holders
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15
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Plan of Distribution
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18
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Description of Securities
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19
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Interests of Experts and Counsel
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20
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Description of Business
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21
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Description of Property
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36
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Legal Proceedings
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36
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Index to Financial Statements
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36
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Selected Financial Data
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37
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Management’s Discussion and Analysis or Plan of Operation
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38
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Changes in Accountants
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46
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Directors, Executive Officers
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47
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Executive Compensation
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49
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Security Ownership
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50
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Certain Transactions
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52
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Available Information
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53
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Experts
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54
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Dealer Prospectus Delivery Obligation. Until ___________________, 2011; all dealers that effect transactions in these securities, whether or not participating in this offering, may be required to deliver a prospectus. This is in addition to the dealers’ obligation to deliver a Prospectus when acting as underwriters and with respect to their unsold allotments or subscriptions.
1,674,400 SHARES
PREMIER BIOMEDICAL, INC.
PROSPECTUS
_______________, 2011
BYLAWS
OF
PREMIER BIOMEDICAL, INC.
(a Nevada corporation)
ARTICLE I
OFFICES
1.1
Offices
. The registered office of Premier Biomedical, Inc. (hereinafter the “Corporation”) in the State of Nevada shall be located in the City and State designated in the Articles of Incorporation. The Corporation may also maintain offices, either within or without the State of Nevada, as the Board of Directors of the Corporation may designate or the business of the Corporation may from time to time require.
ARTICLE II
STOCKHOLDER MEETINGS
2.1
Place of Meetings.
Meetings of the shareholders shall be held at the registered office of the Corporation, or at such other places, within or without the State of Nevada, as the Board of Directors may from time to time fix.
2.2
Annual Meeting.
The annual meeting of the stockholders shall be held on such date and time as shall be fixed, from time to time, by the Board of Directors.
2.3
Special Meetings
. Special meetings of the stockholders, for any purpose or purposes, unless otherwise prescribed by law, the Articles of Incorporation, or these bylaws, may be called by the Chairman of the Board of Directors, if any, the President, or the Board of Directors. Business transacted at any special meeting shall be confined to the purpose or purposes stated in the notice of such meeting.
2.4
Notice of Meetings.
Except as otherwise permitted or provided by law or these Bylaws, written or printed notice of each annual meeting or special meeting of stockholders, signed by the President, Secretary, Chairman of the Board, if any or by such other person or persons as the directors shall designate, stating the place, date and time of the meeting, as well as the purpose or purposes for which the meeting is called shall be served either personally, by fax, or by mail, postage prepaid, by or at the direction of the President, the Secretary, or the officer or the person calling the meeting, not less than ten (10) nor more than sixty (60) days before the date of the meeting to each stockhold er entitled to vote at the meeting. The notice shall also state the general nature of any proposed action to be taken at the meeting. If such notice is to be sent by mail, it shall be deemed to be given when deposited in the United States mail, directed to such stockholder at his or her address as it appears on the share transfer records of the Corporation or to the current address, which a shareholder has delivered to the Corporation in a written notice. Further notice to a shareholder is not required when notice of two consecutive annual meetings, and all notices of meetings or of the taking of action by written consent without a meeting to him or her during the period between those two consecutive annual meetings; or all, and at least two payments sent by first-class mail of dividends or interest on securities during a 12-month period have been mailed addressed to him or her at his or her address as shown on the records of the Corporation and have been returned undeliverab le. Notice of any meeting of stockholders shall not be required to be given to any stockholder who shall attend such meeting in person or by proxy and shall not, at the beginning of such meeting, object to the transaction of any business because the meeting is not lawfully called or convened, or who shall, either before or after the meeting, submit a signed waiver of notice, in person or by proxy. Meeting notification can be via email as well as by U.S. mail.
2.5
List of Stockholders Entitled to Vote.
The officer having charge of the stock ledger of the Corporation shall prepare and make, at least ten (10) days before every meeting of the stockholders, a complete list of the stockholders entitled to vote at such meeting arranged in alphabetical order, showing the address of each stockholder and the number of shares registered in the name of each stockholder. The list shall be open to the examination of any stockholder for any purpose germane to the meeting, during ordinary business hours at the principal office of the Corporation, whether within or outside of the state of Nevada, for a period of at least 10 days prior to the meeting. & #160;The list shall also be produced and kept at the time and place of the meeting during the whole time thereof, and may be inspected by any stockholder who is present for the purposes thereof.
2.6
Quorum and Adjournment
.
Except as provided herein, or by law or by the Articles of Incorporation, the holders of a majority of the shares issued and outstanding of the Corporation entitled to be voted, present in person or by proxy, shall constitute a quorum for the transaction of business at any meeting of the stockholders of the Corporation or any adjournment thereof. The stockholders present at a duly called or held meeting at which a quorum is present may continue to do business until adjournment, notwithstanding the withdrawal of enough stockholders to leave less than a quorum. The chairman of the meeting or a majority of the shares so represented may adjourn the meeting from time to time, whether or not there is such a quorum. No notice of the time and place of adjourned meetings need be given except as required by law. At any such adjourned meeting at which a quorum shall be present or represented, any business may be transacted which might have been transacted at the meeting as originally called.
2.7
Voting.
Except as otherwise provided by law, the Articles of Incorporation, or these Bylaws, any corporate action, the affirmative vote of the majority of shares entitled to vote on that matter and represented either in person or by proxy at a meeting of shareholders at which a quorum is present, shall be the act of the shareholders of the Corporation. Except as otherwise provided by statute, the Articles of Incorporation, or these bylaws, at each meeting of shareholders, each shareholder of the Corporation entitled to vote thereat, shall be entitled to one vote for each share registered in his name on the books of the Corporation.
2.8
Proxy
. Each shareholder entitled to vote or to express consent or dissent without a meeting, may do so either in person or by proxy, so long as such proxy is executed in writing by the shareholder himself, or by his duly authorized attorney-in-fact. No such proxy shall be voted or acted upon after six (6) months from the date of its execution. A duly executed proxy shall be irrevocable if it states that it is irrevocable and if, and only as long as, it is coupled with an interest sufficient in law to support an irrevocable power. A stockholder may revoke any proxy which is not irrevocable by attending the meeting and voting in person or by filing an instrument in writing revoking the proxy or another duly executed proxy bearing a later date with the Secretary of the Corporation.
2.9
Voting of Shares by Certain Holders
. Shares standing in the name of another corporation may be voted by such officer, agent or proxy as the Bylaws of such corporation may preserve, or, in the absence of such provision, as the Board of Directors of such corporation may determine. Shares held by an administrator, executor, guardian or conservatory may be voted by him either in person or by proxy, without a transfer of such shares into his name. Shares standing in the name of a trustee may be voted by him, either in person or by proxy, but no trustee shall be entitled to vote shares held by him without a transfer of such shares into his name. Shares standing in t he name of a receiver may be voted by such receiver, and shares held by or under the control of a receiver may be voted by such receiver without the transfer thereof into his name if authority so to do be contained in appropriate order of the court by which such receiver was appointed. A shareholder whose shares are pledged shall be entitled to vote such shares until the shares have been transferred into the name of the pledgee, and thereafter the pledgee shall be entitled to vote the shares so transferred. Shares of its own stock belonging to the Corporation or held by it in a fiduciary capacity shall not be voted, directly or indirectly, at any meeting, and shall not be counted in determining the total number of outstanding shares at any given time.
2.10
Action Without Meeting.
Unless otherwise provided by law, the Articles of Incorporation or these Bylaws, any action to be taken at any annual or special meeting of stockholders may be taken without a meeting, without prior notice and without a vote, if written consents are signed by shareholders representing a majority of the shares entitled to vote at such a meeting, except however, if a different proportion of voting power is required by law, the Articles of Incorporation or these Bylaws, than that proportion of written consents is required. Such written consents must be filed with the minutes of the proceedings of the shareholders of the Corporation
2.11
Order of Business
. The order of business at all meetings of stockholders shall be as determined by the person presiding over the meeting.
ARTICLE III
DIRECTORS
3.1
Duties, Powers and Remuneration.
The Board of Directors shall be responsible for the control and management of the business and affairs, property and interests of the Corporation, and may exercise all powers of the Corporation, except such as those stated under Nevada state law, are in the Articles of Incorporation or by these Bylaws, expressly conferred upon or reserved to the shareholders or any other person or persons named therein.
3.2
Number, Term, Election and Qualifications
. The Board of Directors of the Corporation shall consist of not less than one (1) and not more than nine (9) directors, and the exact number of directors which shall constitute the Board of Directors shall be fixed from time to time by resolution of the Board. Except as may otherwise be provided herein or in the Articles of Incorporation, the first Board of Directors shall hold office until the first annual meeting of shareholders and until their successors have been duly elected and qualified or until there is a decrease in the number of directors. Thereinafter, directors will be elected at the annual meeting of shareholders and shall hold office until the annual meeting of the shareholders next succeeding his election, unless their terms are staggered in the Articles of Incorporation of the Corporation (so long as at least one - fourth in number of the directors of the Corporation are elected at each annual shareholders’ meeting) or these Bylaws, or until his prior death, resignation or removal. Directors shall be elected by a plurality of the votes of the shares present in person or represented by proxy at the meeting and entitled to vote on the election of directors. Any director may resign at any time upon written notice of such resignation to the Corporation. All directors of the Corporation shall have equal voting power unless the Articles of Incorporation of the Corporation provide that the voting power of individual directors or classes of directors are greater than or less than that of any other individual directors or classes of directors, and the different voting powers may be state d in the Articles of Incorporation or may be dependent upon any fact or event that may be ascertained outside the Articles of Incorporation if the manner in which the fact or event may operate on those voting powers is stated in the Articles of Incorporation. If the Articles of Incorporation provide that any directors have voting power greater than or less than other directors of the Corporation, every reference in these Bylaws to a majority or other proportion of directors shall be deemed to refer to majority or other proportion of the voting power of all the directors or classes of directors, as may be required by the Articles of Incorporation. Directors do not need to be residents of Nevada or shareholders of the Corporation.
3.3
Vacancies
. Any vacancies in the Board of Directors for any reason, and any newly created directorships resulting from any increase in the authorized number of directors, may be filled by a majority of the directors then in office, though less than a quorum, or by a sole remaining director, and the directors so chosen shall hold office for a term expiring at the next annual meeting of stockholders and until their successors are duly elected and qualified or until their earlier resignation or removal. If there are no directors in office, then an election of directors may be held in the manner provided by statute. When one or more directors shall give notice of resignation to the Boar d, effective at a future date, the acceptance of such resignation shall not be necessary to make it effective. The Board shall have power to fill such vacancy or vacancies to take effect when such resignation or resignations shall become effective, each director so appointed to hold office during the remainder of the term of office of the resigning director or directors.
3.4
Resignation
. A director may resign at any time by giving written notice of such resignation to the Corporation.
3.5
Removal
. Unless otherwise provided for by the Articles of Incorporation, one or more or all the directors of the Corporation may be removed with or without cause at any time by a vote of two-thirds of the shareholders entitled to vote thereon, at a special meeting of the shareholders called for that purpose, unless the Articles of Incorporation provide that directors may only be removed for cause, provided however, such director shall not be removed if the Corporation states in its Articles of Incorporation that its directors shall be elected by cumulative voting and there are a sufficient number of shares cast against his or her removal, which if cumulatively voted at an election of director s would be sufficient to elect him or her. If a director was elected by a voting group of shareholders, only the shareholders of that voting group may participate in the vote to remove that director.
3.6
Meetings and Communications Equipment
. The Board of Directors of the Corporation may hold meetings, both regular and special, within or without the State of Nevada. Members of the Board of Directors or any committee designated by such Board may participate in and act at any meeting of such board or committee by means of conference telephone or similar communications equipment by means of which all persons participating in the meeting can hear and speak with each other. Such participation shall constitute presence in person at the meeting.
3.7
Regular Meetings, Notice
. (a) A regular meeting of the Board of Directors shall be held either within or without the State of Nevada at such time and at such place as the Board shall fix; (b) No notice shall be required of any regular meeting of the Board of Directors and, if given, need not specify the purpose of the meeting; provided, however, that in case the Board of Directors shall fix or change the time or place of any regular meeting when such time and place was fixed before such change, notice of such action shall be given to each director who shall not have been present at the meeting at which such action was taken within the time limited, and in the manner set forth in these Bylaws with respect to special meetings, unless such notice shall he waived in the manner set forth in these Bylaws. Attendance by the Board members at meetings may be by actual physical presence or by telephone, in the form of a conference call.
3.8
Special Meetings, Notice
. (a) Special meetings of the Board of Directors shall he held at such time and place as may be specified in the respective notices or waivers of notice thereof. Special meetings may be called by or at the direction of the Chairman of the Board, if any, the Vice-Chairman of the board, if any, or the President, or of a majority of the directors in office; (b) Except as otherwise required statute, written notice of special meetings shall be mailed directly to each director, addressed to him at his residence or usual place of business, or delivered orally or by email, with sufficient time for the convenient assembly of directors thereat, or shall be sent t o him at such place by telegram, radio or cable, or shall he delivered to him personally or given to him orally, not later than the day before the day on which the meeting is’ to be held. If mailed, the notice of any special meeting shall he deemed to be delivered on the second day after it is deposited in the United States mails, so addressed, with postage prepaid. If notice is given by telegram, it shall be deemed to be delivered when the telegram is delivered to the telegraph company. A notice, or waiver of notice, except as required by these Bylaws, need not specify the business to be transacted at or the purpose or purposes of the meeting; (c) Notice of any special meeting shall not he required to be given to any director who shall attend such meeting without protesting prior thereto or at its commencement, the lack of notice to him, or who submits a signed waiver of notice, whether before or after the meeting. Notice of any adjourned meeting shall not he required to he given .
3.9
Quorum and Adjournments
. At all meetings of the Board of Directors, or any committee thereof, the presence of a majority of the entire Board, or such committee thereof, shall constitute a quorum for the transaction of business, except as otherwise provided by law, by the Articles of Incorporation, or these Bylaws. A majority of the directors present at the time and place of any regular or special meeting, although less than a quorum, may adjourn the same from time to time without notice, whether or not a quorum exists. Notice of such adjourned meeting shall be given to directors not present at time of the adjournment and, unless the time and place of the adjourned meetin g are announced at the time of the adjournment, to the other directors who were present at the adjourned meeting. Attendance is defined as actual physical presence or via telephone.
3.10
Voting
. Except as otherwise provided herein, in the Articles of Incorporation or by law, the vote of a majority of the directors present at any meeting at which a quorum is present shall constitute the act of the Board of Directors.
3.11
Action Without Meeting
. Unless otherwise restricted by the Articles of Incorporation or these bylaws, any action required or permitted to be taken at any meeting of the Board of Directors or of any committee thereof may be taken without a meeting, if all members of the Board of Directors or committee, as the case may be, consent thereto in writing or by electronic transmission, and the writing or writings or electronic transmission or transmissions are filed with the minutes of proceedings of the Board of Directors or committee.
3.12
Committees
. Unless otherwise provided for by the Articles of Incorporation of the Corporation, the Board of Directors, may from time to time designate from among its members one or more committees, and alternate members thereof, as they deem desirable, each consisting of one or more members, with such powers and authority (to the extent permitted by law and these Bylaws) as may be provided in such resolution. Unless the Articles of Incorporation or Bylaws state otherwise, the Board of Directors may appoint natural persons who are not directors to serve on such committees authorized herein. Each such committee shall serve at the pleasure of the Board and, unless otherwise stated by law, the Certificate of Incorporation, or these Bylaws, shall be governed by the rules and regulations stated herein regarding the Board of Directors.
3.13
Compensation of Directors
. The Board of Directors shall have the authority to fix the compensation of directors. No such payment shall preclude any director from serving the Corporation in any other capacity and receiving compensation therefore. Members of special or standing committees may be allowed like compensation for service as committee members.
3.14
Location of Books and Records
. The books of the Corporation, except such as are required by law to be kept within the State of Nevada, may be kept at such place or places within or outside of the State of Nevada as the Board of Directors may from time to time determine.
ARTICLE IV
OFFICERS
4.1
Election
. The officers of the Corporation shall be elected by the Board of Directors and shall include a President, a Secretary and a Treasurer, none of whom need be directors of the Corporation. Such other officers and assistant officers as may be deemed necessary, from time to time, including any Vice Presidents, may also be elected or appointed by the Board of Directors. Each officer and assistant officer shall have such title, such authority, and perform such duties as are provided in the Bylaws or in a resolution of the Board of Directors which is not inconsistent with these Bylaws. Any one person may hold any number of offices of the Corporation at any o ne time unless specifically prohibited therefrom by law.
4.2
Appointment and Term
. The officers of the Corporation shall be appointed by the Board of Directors for a term as determined by the board of directors. If no term is specified, they shall hold office until the first meeting of the directors held after the next annual meeting of shareholders. If the appointment of officers shall not be made at such meeting, such appointment shall be made as soon thereafter as is convenient. Each officer shall hold office until his successor shall have been duly elected and shall have qualified, until his death, or until he shall resign or is removed in the manner hereinafter provided.
4.3
Removal of Officers
. Any officer may be removed, either with or without cause, by a majority of the directors at the time in office, at any regular or special meeting of the Board. Such removal shall be without prejudice to the contract rights, if any, of the person so removed. Appointment of an officer or agent shall not of itself create contract rights.
4.5
Resignation of Officers
. Any officer may resign at any time, subject to any rights or obligations under any existing contracts between the officers and the Corporation, by giving notice to the President or Board of Directors. An officer’s resignation shall take effect at the time specified therein, and the acceptance of such resignation shall not be necessary to make it effective.
4.6
Compensation
. The compensation of the officers of the Corporation shall be fixed from time to time by the Board of Directors.
4.7
Vacancies
. Any vacancy in any office may be filled by the Board of Directors or in the manner determined by the Board.
4.8
Bonds
. N/A
4.9
President
. Unless the Board of Directors has designated the Chairman of the Board, if any, as Chief Executive Officer, the President shall be the Chief Executive Officer of the Corporation and shall, subject to the control of the Board of Directors, have general and active management of the business of the Corporation and shall see that all orders and resolutions of the Board of Directors are carried into effect. If there shall be no Chairman of the Board, or he or she shall be absent or deem not to so preside, then the President shall preside at such meeting of the shareholders, and in his absence, any other director chosen by the Board of Directors shall preside at the meeting of shareholders. The President may sign, with the Secretary or any other proper officer of the Corporation thereunder authorized by the Board of Directors, certificates for shares of the Corporation and deeds, mortgages, bonds, contracts, or other instruments which the Board of Directors has authorized to be executed, except in cases where the signing and execution thereof shall be expressly delegated by the Board of Directors or by these Bylaws to some other officer or agent of the Corporation, or shall be required by law to be otherwise signed or executed. The President shall keep the Board of Directors fully informed and shall consult them concerning the business of the Corporation.
4.10
Secretary
. The Secretary shall keep, or cause to be kept, a book of minutes at the principal office or such other place as the Board of Directors may order, of all meetings of directors and shareholders, with the time and place of holding, whether regular or special, and if special, how authorized, the notice thereof given, the names of those present at directors’ meetings, the number of shares present or represented at shareholders’ meetings and the proceedings thereof. The Secretary shall keep, or cause to be kept, at the principal office, a share register, or a duplicate share register, showing the names of the shareholders and their addresses; the number and classe s of shares held by each; the number and date of certificates issued for the same, and the number and date of cancellation of every certificate surrendered for cancellation. The Secretary shall give, or cause to be given, notice of all the meetings of the shareholders and of the Board of Directors required by the Bylaws or by law to be given, and he/she shall keep the seal of the Corporation in safe custody, and shall have such other powers and perform such other duties as may be prescribed by the Board of Directors or the Bylaws. The Board of Directors may give general authority to any other officer to affix the seal of the Corporation and to attest the affixing by his/her signature.
4.11
Treasurer and Assistant Treasurers
. The Treasurer shall have custody of the Corporate funds and securities of the Corporation and shall keep and maintain, or cause to be kept and maintained, adequate and correct accounts of the properties and business transactions of the Corporation. The Treasurer shall deposit all moneys and valuables in the name and to the credit of the Corporation in such depository as may be designated by the Board of Directors. The Treasurer shall disburse the funds of the Corporation as directed by the Board of Directors, shall render to the Chief Executive Officer, Chairman of the Board, and directors, whenever they request it, an account of all transactions and of the financial condition of the Corporation, and shall have such other powers and perform such other duties as may be prescribed by the Board of Directors. The books of account shall at all times be open to inspection by any director. It shall be the duty of any Assistant Treasurer(s), if any, to assist the Treasurer in the performance of his or her duties and to perform such other duties and have other powers as may from time to time be prescribed by the Board of Directors.
4.12
Chairperson
. The Chairman of the Board, if any and if present, shall preside at all meetings of the stockholders and the Board of Directors and perform such other duties and have such other powers as may be from time to time assigned to him by the Board of Directors or prescribed by the Bylaws. If there shall be no Chairman of the Board, or he or she shall be absent, or deem not to so preside
,
then the President shall preside at such meeting of shareholders, and in his absence, any other director chosen by the Board of Directors shall preside at such meeting of the shareholders. The Chairman of the Board, if any, s hall name a Vice Chairman who shall preside at all meetings of the Board of Directors in the absence of the Chairman of the Board. In the absence of the Chairman and Vice Chairman, any director designated by the Board of Directors shall preside at such meeting of the Board of Directors.
4.13
Vice Presidents
. The most senior rank of the Vice Presidents, if any, shall exercise the functions of the President, in the President’s absence, or in the event of the President’s inability or refusal to act. The Vice President(s), if any, shall have such powers and duties as may be assigned to him or her from time to time by the Board of Directors.
4.14
Delegation of Authority
. The Board of Directors may from time to time delegate the powers or duties of any officer to any other officer or agent, notwithstanding any provision hereof.
ARTICLE V
INDEMNIFICATION
5.1
Right to Indemnification.
Section 1: Each person who was or is made a party or is threatened to be made a party to or is otherwise involved (including involvement as a witness) in any action, suit or proceeding, whether civil, criminal, administrative or investigative ( a “proceeding”), by reason of the fact that he or she is or was a director or officer of the Corporation or a wholly owned subsidiary of the Corporation or, while a director or officer of the Corporation or a wholly owned subsidiary of the Corporation, is or was serving at the request of the Corporation or a wholly owned subsidiary of the Corporation as a director or officer of any other corporation or as its representative in a partnership, joint venture, trust or other entity or enterprise (hereinafter as “indemnitee”), shall be indemnified and held harmless by the Corporation to the fullest extent authorized by the Nevada General Corporation Law, as the same exists or may hereafter be amended, against all expense, liability and loss (including attorneys’ fees, judgments, fines, excise taxes or penalties and amounts paid in settlement) reasonably incurred or suffered by such indemnitee in connection therewith and such indemnification shall continue as to an indemnitee who has ceased to be a director or officer and shall inure to the benefit of the indemnitee’s heirs, executors and administrators provided, however, that, except as provided in Section 5.2 of this ARTICLE V with respect to proceeding(s) to enforce rights to indemnification or advance of expenses, the Corporation shall not indemnify any such indemnitee in connection with a proceeding (or part thereof) initiated by such indemnitee except to the extent such proceeding (or part thereof) was authorized in writing by the Board of Directors of the Corporation. The right to indemnif ication conferred in this Section 5.1 of this ARTICLE V shall be a contract right based upon good and valuable consideration and shall include the obligation of the Corporation to pay the reasonable expenses incurred in defending any such proceeding in advance of its final disposition (an “advance of expenses”); provided, however, that an advance of expenses incurred by an indemnitee in his or her capacity as a director or officer shall be made only upon delivery to the Corporation of an undertaking (an “undertaking”), by or on behalf of such indemnitee, to repay all amounts so advanced if it shall ultimately be determined by final judicial decision from which there is no further right to appeal (a “final adjudication”) that such indemnitee is not entitled to be indemnified for such expenses under this Section 5.1 of this ARTICLE V or otherwise.
Section 2: Other Employees and Agents. Unless otherwise restricted by the Articles of Incorporation, Nevada General Corporation Law, or these bylaws, the Corporation may indemnify such other employees and agents of the Corporation to the same extent and in the same manner as is provided under Section 1 of this Article V with respect to directors and officers, by adopting a resolution by a majority of the members of the Board specifically identifying by name or by position the employees or agents entitled to indemnification.
Section 3: The Corporation may purchase and maintain insurance on its own behalf and behalf of any person who is or was a director, officer, employee, or agent of the Corporation, or a wholly owned subsidiary of the Corporation, or is or was serving at the request of the Corporation as a director, officer, employee, or agent of another corporation, or as its representative in a partnership, joint venture, trust, or other enterprise against any liability asserted against such person and incurred in any such capacity or arising out of such status, whether or not the Corporation would have the power to indemnify such person.
5.2
Procedure for Indemnification
. Any indemnification of the indemnitee or advance of expenses under Section 5.1 of this ARTICLE V shall be made promptly, and in any event within thirty (30) days, upon the written request of the indemnitee. If the Corporation denies a written request for indemnification or advance of expenses, in whole or in part, or if payment in full pursuant to such request is not made within sixty (60) days, the right to indemnification or advances as granted by this ARTICLE V shall be enforceable by the indemnitee in any court of competent jurisdiction. Such person’s costs and expenses incurred in connection with successfully establishing his or her right to indemnification or advance of expenses, in whole or in part, in any such action shall also be indemnified by the Corporation.
5.3
Non-Exclusivity of Rights.
The rights to indemnification and to the advance of expenses conferred in this ARTICLE V and in the Articles of Incorporation shall not be exclusive of any other right which any person may have or hereafter acquire hereunder or under any statute, by-law, agreement, vote of stockholders or disinterested directors or otherwise.
5.4
Merger or Consolidation
. For purposes of this ARTICLE V, references to the “Corporation” shall include, in addition to the corporation resulting from or surviving a consolidation or merger with the Corporation, any constituent corporation (including any constituent of a constituent) absorbed in a consolidation or merger with the Corporation which, if its separate existence had continued, would have had power and authority to indemnify its directors or officers, so that any person who is or was a director or officer of such constituent corporation, or is or was serving at the request of such constituent corporation as a director, officer, manager, or agent of another corporation or of a partnership, joint venture, trust or other entity or enterprise shall stand in the same position under this ARTICLE V with respect to the resulting or surviving corporation as he or she would have with respect to such constituent corporation if its separate existence had continued.
5.5
Severability
. If any provision of this ARTICLE V shall be found to be invalid or limited in application by reason of any law or regulation, it shall not affect the validity of the remaining provisions hereof.
ARTICLE VI
STOCK; RECORD DATES
6.1
Certificates of Stock; Uncertificated Shares
. The shares of the Corporation shall be represented by certificates; provided, however, that the Board of Directors may provide by resolution or resolutions that some or all of any or all classes or series of the corporation’s stock shall be uncertificated shares. Any such resolution shall not apply to shares represented by a certificate until such certificate is surrendered to the Corporation. Notwithstanding the adoption of any resolution providing for uncertificated shares, every holder of stock represented by certificates and upon request, every holder of uncertificated shares, shall be entitled to hav e a certificate, in such form as the Board shall prescribe, signed by, or in the name of the Corporation by the CEO, or by the Chairman of the Board, if any, or by any Vice President, and countersigned by the Secretary or an assistant Secretary or the Treasurer representing the number of shares registered in certificate form. Any of or all of the signatures on the certificates may be by facsimile. In case any officer, transfer agent, or registrar who as signed, or whose facsimile signature has been placed upon, any such certificate shall have ceased to be such officer, transfer agent, or registrar before such certificate is issued, such certificate may nevertheless be issued by the Corporation with the same effect as though the person who signed such certificate, or whose facsimile signature shall have been placed thereupon, were such officer, transfer agent or registrar at the date of issue. Whenever the corporation shall be authorized to issue more than one class of stock or more than one series of any class of stock, and whenever the corporation shall issue any shares of special stock, the certificates representing shares of any such class or series or of any such special stock shall set forth thereon the statements prescribed by the Nevada Business Corporation Act. Any restrictions on the transfer or registration of transfer of any shares of stock of any class or series shall be noted conspicuously on the certificate representing such shares.
6.2
Cancellation of Certificates; Lost or Destroyed Certificates
. All certificates surrendered to the corporation for transfer shall be canceled and no new certificates shall be issued in lieu thereof until the former certificate for a like number of shares shall have been surrendered and canceled, except that in case of a lost, destroyed or mutilated certificate, a new one may be issued therefore upon such terms and indemnity to the corporation as the Board of Directors may prescribe.
6.3
Transfer of Shares
. (a) Transfers or registration of transfers of shares of the Corporation shall be made on the stock transfer books of the Corporation by the registered holder thereof, or by his or her duly authorized attorney; and in the case of shares represented by certificates, only after the surrender to the Corporation of the certificates representing such shares with such shares properly endorsed, with such evidence of the authenticity of such endorsement, transfer, authorization and other matters as the Corporation may reasonably require, and the payment of all stock transfer taxes due thereon; (b) The Corporation shall be entitled to treat the holder of record of any share or share s as the absolute owner thereof for all purposes and, accordingly, shall not be bound to recognize any legal, equitable or other claim to, or interest in, such share or shares on the part of any other person, whether or not it shall have express or other notice thereof, except as otherwise expressly provided by law.
6.4
Record Date
. For purposes of determining the stockholders entitled to notice of, or to vote at, any meeting of stockholders, or any adjournment thereof, or to express consent to corporate action without a meeting, or entitled to receive payment of any dividend or other distribution or allotment of any rights, or entitled to exercise any rights in respect of any change, conversion or exchange of stock or for the purpose of any other lawful action, the Board of Directors may fix a date as the record date, which record date shall not be more than sixty (60) days nor less than ten (10) days preceding the date of any meeting of stockholders, nor more than (10) days after the date on whi ch the date fixing the record date for the consent of stockholders without a meeting is adopted by the Board of Directors, nor more than 60 days prior to any other such action. If no record date is fixed, the record date will be as provided by law. A determination of stockholders entitled to notice of or to vote at a meeting of the stockholders will apply to any adjournment of the meeting, unless the Board of Directors fixes a new record date for the adjourned meeting.
6.5
Stockholders of Record
. The corporation shall be entitled to recognize the exclusive right of a person registered on its books as the owner of shares to receive dividends, and to vote as such owner, and to hold liable for calls and assessments a person registered on its books as the owner of shares, and shall not be bound to recognize any equitable or other claim to or interest in such share or shares on the part of any other person, whether or not it shall have express or other notice thereof, except as otherwise provided by the laws of the State of Nevada.
ARTICLE VII
GENERAL PROVISIONS
7.1
Dividends
. (a) Dividends may be declared and paid out of any funds available therefore, as often, in such amounts, and at such time or times as the Board of Directors may determine and shares may be issued pro rata and without consideration to the Corporation’s shareholders or to the shareholders of one or more classes or series; (b) Shares of one class or series may not be issued as a share dividend to shareholders of another class or series unless such issuance is in accordance with the Articles of Incorporation and (i) a majority of the current shareholders of the class or series to be issued approve the issue; or (ii) there are no outstanding shares of the class or series of shares that are authorized to be issued as a dividend.
7.2
Reliance upon Books, Reports, and Records
. Each director, each member of any committee designated by the Board of Directors, and each officer of the Corporation shall, in the performance of his or her duties, be fully protected in relying in good faith upon the books of account or other records of the Corporation and upon such information, opinions, reports or statements presented to the Corporation by any of its officers, employees, or committees of the the Board of Directors so designated, by an independent certified public accountant, or by any other person as to matters which such director or committee member reasonably believes are within such other person’s professional or expert competence and who has been selected with reasonable care by or on behalf of the Corporation.
7.3
Annual Statement.
The Board of Directors shall present at each annual meeting, and at any special meeting of the stockholders when called for by vote of the stockholders, a full and clear statement of the business and condition of the Corporation.
7.4
Checks
. All checks or demands for money and notes of the corporation shall be signed by such officer or officers or such other person or persons as the Board of Directors may from time to time designate.
7.5
Contracts
. Except as otherwise provided in these Bylaws, the Board of Directors may authorize any officer or officers, agent or agents, of the Corporation to enter into any contract or to execute and deliver any instrument in the name of and on behalf of the Corporation, and such authority may be general or confined to specific instances.
7.6
Loans
. No loans shall be contracted on behalf of the corporation and no evidence of indebtedness shall be issued in its name unless authorized by a resolution of the Board of Directors. Such authority may be general or confined to specific instances.
7.7
Section Headings
. Section headings in these Bylaws are for convenience of reference only and shall not be given any substantive effect in limiting or otherwise construing any provision herein.
7.8
Waiver of Notice
. Whenever any notice is required to be given by law, the Articles of Incorporation or these Bylaws, a written waiver signed by the person or persons entitled to such notice, whether before or after the meeting by any person, shall constitute a waiver of notice of such meeting.
ARTICLE VIII
FISCAL YEAR
8.1
Fiscal Year
. The fiscal year of the Corporation shall be fixed by the Board of Directors, and shall be subject to change by the Board of Directors from time to time, subject to applicable law.
ARTICLE IX
CORPORATE SEAL
9.1
Corporate Seal
. The corporate seal, if any, shall be in such form as shall be prescribed and altered, from time to time, by the Board of Directors. The use of a seal or stamp by the Corporation on corporate documents is not necessary and the lack thereof shall not in any way affect the legality of a corporate document.
ARTICLE X
INTERESTED DIRECTORS
10.1
Interested Directors
. No contract or transaction shall be void or voidable if such contract or transaction is between the corporation and one or more of its directors or officers, or between the Corporation and any other corporation, partnership, association, or other organization in which one or more of its directors or officers, are directors or officers, or have a financial interest, when such director or officer is present at or participates in the meeting of the Board, or the committee of the shareholders which authorizes the contract or transaction or his, her or their votes are counted for such purpose, if:
(a) the material facts as to his, her or their relationship or interest and as to the contract or transaction are disclosed or are known to the Board of Directors or the committee and are noted in the minutes of such meeting, and the Board or committee in good faith authorizes the contract or transaction by the affirmative votes of a majority of the disinterested directors, even though the disinterested directors be less than a quorum; or
(b) the material facts as to his, her or their relationship or relationships or interest or interests and as to the contract or transaction are disclosed or are known to the shareholders entitled to vote thereon, and the contract or transaction is specifically approved in good faith by vote of the shareholders; or (c) the contract or transaction is fair as to the Corporation as of the time it is authorized, approved or ratified, by the Board of Directors, a committee of the shareholders; or
(d) the fact of the common directorship, office or financial interest is not disclosed or known to the director or officer at the time the transaction is brought before the Board of Directors of the Corporation for such action. Such interested directors may be counted when determining the presence of a quorum at the Board of Directors’ or committee meeting authorizing the contract or transaction.
ARTICLE XI
ANNUAL LIST OF OFFICERS, DIRECTORS AND REGISTERED AGENT
11.1
Annual List
. The Corporation shall, within sixty days after the filing of its Articles of Incorporation with the Secretary of State, and annually thereafter on or before the last day of the month in which the anniversary date of incorporation occurs each year, file with the Secretary of State a list of its president, secretary and treasurer and all of its directors, along with the post office box or street address, either residence or business, and a designation of its resident agent in the state of Nevada. Such list shall be certified by an officer of the Corporation.
ARTICLE XII
AMENDMENTS
12.1
Amendments
.
Section 1. By Shareholders: All Bylaws of the Corporation shall be subject to alteration or repeal, and new Bylaws may be made by a majority vote of the shareholders at any annual meeting or special meeting called for that purpose.
Section 2. By Directors: The Board of Directors shall have power to make, adopt, alter, amend and repeal, from time to time, Bylaws of the Corporation
CERTIFICATE OF SECRETARY
I, Heidi H. Carl, hereby certify that:
I am the Secretary of Premier Biomedical, Inc., a Nevada corporation;
and
The foregoing Bylaws, consisting of 15 pages, are a true and correct copy of the Bylaws of the corporation as duly adopted by approval of the Board of Directors of the corporation at the organizational meeting on June 7, 2010.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of the Corporation this 7th day of June, 2010.
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/s/ Heidi H. Carl
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Heidi H. Carl, Secretary
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FIRST AMENDMENT
TO
BYLAWS
OF
PREMIER BIOMEDICAL, INC.
(a Nevada corporation)
Section 3.2 of the Bylaws of Premier Biomedical, Inc., a Nevada corporation, originally adopted on June 7, 2010, is restated in its entirety as follows:
“3.2
Number, Term, Election and Qualifications
. The Board of Directors of the Corporation shall consist of not less than one (1) and not more than seven (7) directors, and the exact number of directors which shall constitute the Board of Directors shall be fixed from time to time by resolution of the Board. Except as may otherwise be provided herein or in the Articles of Incorporation, the first Board of Directors shall hold office until the first annual meeting of shareholders and until their successors have been duly elected and qualified or until there is a decrease in the number of directors. Thereinafter, directors will be elected at the annual meeting of shareholders and shall hold office until the annual meeting of the shareholders next succeeding his election, unless their terms are staggered in the Articles of Incorporation of the Corporation (so long as at least one - fourth in number of the directors of the Corporation are elected at each annual shareholders’ meeting) or these Bylaws, or until his prior death, resignation or removal. Directors shall be elected by a plurality of the votes of the shares present in person or represented by proxy at the meeting and entitled to vote on the election of directors. Any director may resign at any time upon written notice of such resignation to the Corporation. All directors of the Corporation shall have equal voting power unless the Articles of Incorporation of the Corporation provide that the voting power of individual directors or classes of directors are greater than or less than that of any other individual directors or classes of directors, and the different voting powers may be stated in the Articles of Incorporation or may be dependent upon any fact or event that may be ascertained outside the Articles of Incorporation if the manner in which the fact or event may operate on those voting powers is stated in the Articles of Incorporation. If the Articles of Incorporation provide that any directors have voting power greater than or less than other directors of the Corporation, every reference in these Bylaws to a majority or other proportion of directors shall be deemed to refer to majority or other proportion of the voting power of all the directors or classes of directors, as may be required by the Articles of Incorporation. Directors do not need to be residents of Nevada or shareholders of the Corporation.”
CERTIFICATE OF SECRETARY
I, Heidi H. Carl, hereby certify that:
I am the Secretary of Premier Biomedical, Inc., a Nevada corporation; and
The foregoing First Amendment to Bylaws of Premier Biomedical, Inc., consisting of one(1) page, is a true and correct copy of the First Amendment to Bylaws of the corporation as duly adopted by approval of the Board of Directors of the corporation on January 6, 2011.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of the Corporation this 7th day of January, 2011.
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/s/ Heidi H. Carl
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Heidi H. Carl, Secretary
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CERTIFICATE OF DESIGNATION
OF THE RIGHTS, PREFERENCES, PRIVILEGES
AND RESTRICTIONS, WHICH HAVE NOT BEEN SET
FORTH IN THE CERTIFICATE OF INCORPORATION
OR IN ANY AMENDMENT THERETO,
OF THE
SERIES A CONVERTIBLE PREFERRED STOCK
OF
PREMIER BIOMEDICAL, INC.
The undersigned, William A. Hartman and Heidi H. Carl, do hereby certify that:
A.
They are the President and Secretary, respectively, of Premier Biomedical, Inc., a Nevada corporation (the “Corporation”).
WHEREAS, the Certificate of Incorporation of the Corporation authorizes a class of stock designated as Preferred Stock, with a par value of $0.001 per share (the “Preferred Class”), comprising Ten Million (10,000,000) shares and provides that the Board of Directors of the Corporation may fix the terms, including any dividend rights, dividend rates, conversion rights, voting rights, rights and terms of any redemption, redemption, redemption price or prices, and liquidation preferences, if any, of the Preferred Class;
WHEREAS, the corporation has not issued any shares of the Preferred Class;
WHEREAS, the Board of Directors believes it in the best interests of the Corporation to create a new series of preferred stock consisting of Two Million (2,000,000) shares and designated as the “Series A Convertible Preferred Stock” having certain rights, preferences, privileges, restrictions and other matters relating to the Series A Convertible Preferred Stock.
NOW, THEREFORE, BE IT RESOLVED, that the Board of Directors does hereby fix and determine the rights, preferences, privileges, restrictions and other matters relating do the Series A Convertible Preferred Stock as follows:
1.
Definitions.
For purposes of this Certificate of Designation, the following definitions shall apply:
1.1
“Board” shall mean the Board of Directors of the Corporation.
1.2 “Corporation” shall mean Premier Biomedical, Inc., a Nevada corporation.
1.3 “Common Stock” shall mean the common stock, $0.00001 par value per share, of the Corporation.
1.4 “Common Stock Dividend” shall mean a stock dividend declared and paid on the Common Stock that is payable in shares of Common Stock.
1.5 “Conversion Date” shall have the meaning set forth in Section 4(b).
1.6
“Distribution” shall mean the transfer of cash or property by the Corporation to one or more of its stockholders without consideration, whether by dividend or otherwise (except a dividend in shares of Corporation’s stock).
1.7
“Holder” shall mean a holder of the Series A Convertible Preferred Stock.
1.8
“Liquidation Price” shall mean $1.25 per share for the Series A Convertible Preferred Stock.
1.9
“Original Issue Date” shall mean t
he date on which the first share of Series A Convertible Preferred Stock is issued by the Corporation.
1.10 “Person” shall mean an individual, a corporation, a partnership, an association, a limited liability company, an unincorporated business organization, a trust or other entity or organization, and any government or political subdivision or any agency or instrumentality thereof.
1.11 “Series A Convertible Preferred Stock” shall mean the Series A Convertible Preferred Stock, $0.001 par value per share, of the Corporation.
1.12
“Subsidiary” shall mean any corporation or limited liability company or corporation of which at least fifty percent (50%) of the outstanding voting stock or membership interests, as the case may be, is at the time owned directly or indirectly by the Corporation or by one or more of such subsidiary corporations.
2.
Dividend Rights
.
2.1
In each calendar year, the holders of the then outstanding Series A Convertible Preferred Stock shall be entitled to receive, when, as and if declared by the Board, out of any funds and assets of the Corporation legally available therefore, noncumulative dividends in an amount equal to any dividends or other Distribution on the Common Stock in such calendar year (other than a Common Stock Dividend). No dividends (other than a Common Stock Dividend) shall be paid, and no Distribution shall be made, with respect to the Common Stock unless dividends in such amount shall have been paid or declared and set apart for payment to the holders of the Series A Convertible Preferred Stock simultaneously. Dividends on the Series A Convertible Preferred Stock shall not be mandatory or cumulative, and no rights or interest shall accrue to the holders of the Series A Convertible Preferred Stock by reason of the fact that the Corporation shall fail to declare or pay dividends on the Series A Convertible Preferred Stock, except for such rights or interest that may arise as a result of the Corporation paying a dividend or making a Distribution on the Common Stock in violation of the terms of this Section 2.
2.2
Participation Rights. Dividends shall be declared pro rata on the Common Stock and the Series A Convertible Preferred Stock on a pari passu basis according to the number of shares of Common Stock held by such holders, where each holder of shares of Series A Preferred Stock is to be treated for this purpose as holding the number of shares of Common Stock to which the holders thereof would be entitled if they converted their shares of Series A Convertible Preferred Stock at the time of such dividend in accordance with Section 4 hereof.
2.3
Non-Cash Dividends. Whenever a dividend or Distribution provided for in this Section 2 shall be payable in property other than cash (other than a Common Stock Dividend), the value of such dividend or Distribution shall be deemed to be the fair market value of such property as determined in good faith by the Board.
3.
Liquidation Rights.
In the event of any liquidation, dissolution or winding up of the Corporation; whether voluntary or involuntary, the funds and assets of the Corporation that may be legally distributed to the Corporation's shareholders (the “Available Funds and Assets”) shall be distributed to shareholders in the following manner:
3.1
Series A Convertible Preferred Stock. The holders of each share of Series A Preferred Stock then outstanding shall be entitled to be paid, out of the Available Funds and Assets, and prior and in preference to any payment or distribution (or any setting apart of any payment or distribution) of any Available Funds and Assets on any shares of Common Stock or subsequent series of preferred stock, an amount per share equal to the Liquidation Price of the Series A Convertible Preferred Stock plus all declared but unpaid dividends on the Series A Convertible Preferred Stock. If upon any liquidation, dissolution or winding up of the Corporation, the Available Funds and Assets shall be insufficient to permit the payment to holders of the Series A Convertible Preferred Stock of their full preferential amount as described in this subsection, then all of the remaining Available Funds and Assets shall be distributed among the holders of the then outstanding Series A Convertible Preferred Stock pro rata, according to the number of outstanding shares of Series A Convertible Preferred Stock held by each holder thereof.
3.2
Participation Rights. If there are any Available Funds and Assets remaining after the payment or distribution (or the setting aside for payment or distribution) to the holders of the Series A Convertible Preferred Stock of their full preferential amounts described above in this Section 3, then all such remaining Available Funds and Assets shall be distributed among the holders of the then outstanding Common Stock and Preferred Stock pro rata according to the number and preferences of the shares of Common Stock and Preferred Stock (as converted to Common Stock) held by such holders.
3.3
Merger or Sale of Assets. A reorganization or any other consolidation or merger of the Corporation with or into any other corporation, or any other sale of all or substantially all of the assets of the Corporation, shall not be deemed to be a liquidation, dissolution or winding up of the Corporation within the meaning of this Section 3, and the Series A Convertible Preferred Stock shall be entitled only to (i) the right provided in any agreement or plan governing the reorganization or other consolidation, merger or sale of assets transaction, (ii) the rights contained in the General Corporation Law of the State of Nevada and (iii) the rights contained in other Sections hereof.
3.4
Non-Cash Consideration.
If any assets of the Corporation distributed to shareholders in connection with any liquidation, dissolution or winding up of the Corporation are other than cash, then the value of such assets shall be their fair market value as determined by the Board.
4.
Conversion Rights
.
4.1
Conversion of Preferred Stock. Each share of Series A Convertible Preferred Stock shall be convertible, at the option of the holder thereof, at any time after the issuance of such share into one (1) fully paid and nonassessable share of Common Stock of the Corporation.
4.2
Procedures for Exercise of Conversion Rights. The holders of any shares of Series A Convertible Preferred Stock may exercise their conversion rights as to all such shares or any part thereof by delivering to the Corporation during regular business hours, at the office of any transfer agent of the Corporation for the Series A Convertible Preferred Stock, or at the principal office of the Corporation or at such other place as may be designated by the Corporation, the certificate or certificates for the shares to be converted, duly endorsed for transfer to the Corporation (if required by the Corporation), accompanied by written notice stating that the holder elects to convert such shares. Conversion shall be deemed to have been effected on the date when such delivery is made, and such date is referred to herein as the “Conversion Date.” As promptly as practicable after the Conversion Date, the Corporation shall issue and deliver to or upon the written order of such holder, at such office or other place designated by the Corporation, a certificate or certificates for the number of full shares of Common Stock to which such holder is entitled and a check for cash with respect to any fractional interest in a share of Common Stock as provided in section 4(c) below. The holder shall be deemed to have become a shareholder of record on the Conversion Date. Upon conversion of only a portion of the number of shares of Series A Convertible Preferred Stock represented by a certificate surrendered for conversion, the Corporation shall issue and deliver to or upon the written order of the holder of the certificate so surrendered for conversion, at the expense of the Corporation, a new certificate covering the number of shares of Series A Convertible Preferred Stock representing the unconverted portion of the certificate so surrendered.
4.3
No Fractional Shares. No fractional shares of Common Stock or scrip shall be issued upon conversion of shares of Series A Convertible Preferred Stock. If more than one share of Series A Convertible Preferred Stock shall be surrendered for conversion at any one time by the same holder, the number of full shares of Common Stock issuable upon conversion thereof shall be computed on the basis of the aggregate number of shares of Series A Convertible Preferred Stock so surrendered. Instead of any fractional shares of Common Stock which would otherwise be issuable upon conversion of any shares of Series A Convertible Preferred Stock, the Corporation shall pay a cash adjustment in respect of such fractional interest equal to the fair market value of such fractional interest as determined by the corporation's Board of Directors.
4.4
Payment of Taxes for Conversions. The Corporation shall pay any and all issue and other taxes that may be payable in respect of any issue or delivery of shares of Common Stock on conversion pursuant hereto of Series A Convertible Preferred Stock. The Corporation shall not, however, be required to pay any tax which may be payable in respect of any transfer involved in the issue and delivery of shares of Common Stock in a name other than that in which the shares of Series A Convertible Preferred Stock so converted were registered, and no such issue or delivery shall be made unless and until the person requesting such issue has paid to the corporation the amount of any such tax, or has established, to the satisfaction of the Corporation, that such tax has been paid.
4.5
Reservation of Common Stock. The Corporation shall at all times reserve and keep available, out of its authorized but unissued Common Stock, solely for the purpose of effecting the conversion of the Series A Convertible Preferred Stock, the full number of shares of Common Stock deliverable upon the conversion of all shares of all series of preferred stock from time to time outstanding.
4.6
Registration or Listing of Shares of Common Stock. If any shares of Common Stock to be reserved for the purpose of conversion of shares of Series A Convertible Preferred Stock require registration or listing with, or approval of, any governmental authority, stock exchange or other regulatory body under any federal or state law or regulation or otherwise, before such shares may be validly issued or delivered upon conversion, the Corporation will in good faith and as expeditiously as possible endeavor to secure such registration, listing or approval, as the case may be.
4.7
Status of Common Stock Issued Upon Conversion. All shares of Common Stock which may be issued upon conversion of the shares of Series A Convertible Preferred Stock will upon issuance by the Corporation be validly issued, fully paid and nonassessable and free from all taxes, liens and charges with respect to the issuance thereof.
4.8
Status of Converted Preferred Stock. In case any shares of Series A Convertible Preferred Stock shall be converted pursuant to this section 4, the shares so converted shall be canceled and shall not be issuable by the Corporation.
5.
Adjustment of Conversion Price
.
5.1
General Provisions. In case, at any time after the date hereof, of any capital reorganization, or any reclassification of the stock of the Corporation (other than a change in par value or as a result of a stock dividend or subdivision, split-up or combination of shares), or the consolidation or merger of the Corporation with or into another person (other than a consolidation or merger in which the Corporation is the continuing entity and which does not result in any change in the Common Stock), or of the sale or other disposition of all or substantially all the properties and assets of the Corporation as an entirety to any other person, the shares of Series A Convertible Preferred Stock shall, after such reorganization, reclassification, consolidation, merger, sale or other disposition, be convertible into the kind and number of shares of stock or other securities or property of the Corporation or of the entity resulting from such consolidation or surviving such merger or to which such properties and assets shall have been sold or otherwise disposed to which such holder would have been entitled if immediately prior to such reorganization, reclassification, consolidation, merger, sale or other disposition it had converted its shares of Series A Convertible Preferred Stock into Common Stock. The provisions of this section 5.1 shall similarly apply to successive reorganizations, reclassifications, consolidations, mergers, sales or other dispositions.
5.2
No Impairment. The Corporation will not, through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, including amending this Certificate of Designation, avoid or seek to avoid the observance or performance of any of the terms to be observed or performed hereunder by the Corporation, but will at all times in good faith assist in the carrying out of all the provisions of this section 5 and in the taking of all such action as may be necessary or appropriate in order to protect the conversion rights of the holders of Series A Convertible Preferred Stock against impairment. This provision shall not restrict the Corporation from amending its Articles of Incorporation in accordance with the Nevada Revised Statutes and the terms hereof.
6.
Redemption
. The Series A Convertible Preferred Stock shall not be redeemable.
7.
Voting Provisions
. Each outstanding share of Series A Convertible Preferred Stock shall be entitled to One Hundred (100) votes per share on all matters to which the shareholders of the Corporation are entitled or required to vote.
8.
Protective Provisions
. The Corporation may not take any of the following actions
without the approval of a majority of the holders of the outstanding Series A Convertible Preferred Stock: (i) effect a sale of all or substantially all of the Corporation’s assets or which results in the holders of the Corporation’s capital stock prior to the transaction owning less than fifty percent (50%) of the voting power of the Corporation’s capital stock after the transaction, (ii) alter or change the rights, preferences, or privileges of the Series A Convertible Preferred Stock, (iii) increase or decrease the number of authorized shares of Series A Convertible Preferred Stock, (iv) authorize the issuance of securities having a preference over or on par with the Series A Convertible Preferred Stock, or (v) effectuate a forward or reverse stock split or dividend of the Corporation’s common stock.
IN WITNESS WHEREOF, the Corporation has caused this Certificate of Designation of Series A Convertible Preferred Stock to be duly executed by its President and attested to by its Secretary this 8th day of June, 2010.
/s/ William A. Hartman
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/s/ Heidi H. Carl
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By:
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William A. Hartman
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By:
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Heidi H. Carl
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Its:
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President
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Its:
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Secretary
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LICENSE AGREEMENT
This Patent License Agreement (“the Agreement”) is effective this
12 day of May, 2010
between:
Altman Enterprises, LLC (“Owner”), having an address at P.O. Box 1332, Hermitage, Pennsylvania 16148; and :
Premier Biomed, Inc. (“Licensee”), a Nevada corporation, having an office at:
1362 Springfield Church Rd., Jackson Center, Pa. 16133.
The parties intending to be legally bound agree as follows.
ARTICLE 1 — GRANT OF LICENSES
1.1 Grant. Subject to the terms of this Agreement,
Owner grants to Licensee exclusive, nontransferable licenses for:
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a.
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the Applications and the Patents; and
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1.2 Duration. Subject to the terms of this Agreement, all licenses granted herein:
a)
under any Patents or Applications shall continue for the entire unexpired term of such patent or for as much of such term as the Owner has the right to grant; and
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b.
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under any Trademark shall continue in perpetuity or for as much of such term as the Owner has the right to grant, except that the license shall revert to Owner if Licensee ceases commercial use of the Trademark for a continuous period of at least one year.
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1.3 Scope. The licenses granted herein are licenses to:
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a.
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make, have made, use, lease, sell and import Licensed Products for the legal purposes of researching, developing, manufacturing, assembling, distributing, and selling the Licensed Products;
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b.
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make, have made, use and import machines, tools, materials and other instrumentalities, insofar as such machines, tools, materials and other instrumentalities are involved in or incidental to the research, development,
manufacture, testing or repair of Licensed Products which are or have been made, used, leased, owned, sold or imported by the Licensee; and
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c.
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convey to any customer of the Licensee, with respect to any Licensed Product which is sold or leased to such customer, rights to use and resell such Licensed Product as sold or leased by Licensee (whether or not as part of a larger combination); provided, however, that no rights may be conveyed to customers with respect to any Invention which is directed to (i) a combination of such Licensed Product (as sold or leased) with any other product, (ii) a method or process which is other than the inherent use of such Licensed Product itself (as sold or leased), or (iii) a method or process involving the use of a Licensed Product to manufacture (including associated testing) any other product.
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Licenses granted herein are solely for products in the form sold by the Licensee and are not to be construed either (i) as consent by the Owner to any act which may be performed by the Licensee, except to the extent impacted by a patent licensed herein to the Licensee, or (ii) to include licenses to contributorily infringe or induce infringement under U.S. law or a foreign equivalent thereof.
The grant of each license hereunder includes the right to grant sublicenses to Related Companies for so long as it remains a Related Companies. Any such sublicense may be made effective retroactively, but not prior to the effective date hereof, nor prior to the sublicensee's becoming a Related Companies.
1.4 Ability to Provide Licenses.
Owner warrants that, upon execution hereof by him and as of the effective date hereof, there are no known commitments or restrictions which limit the licenses and rights which are purported to be granted hereunder by him.
1.5 Publicity.
Nothing in this Agreement shall be construed as conferring upon either party or its Related Companies any right to include in advertising, packaging or other commercial activities related to a Licensed Product, any reference to the other party (or any of its Related Companies), its trade names, trademarks or service marks in a manner which would be likely to cause confusion or to indicate that such Licensed Product is in any way certified by the other party hereto or its Related Companies.
1.6 Good Faith.
Licensee understands that this Agreement is not predicated on any specific grant of patent or trademark registration. Owner shall have no liability for a failure to pursue or obtain any specific patent or trademark.
ARTICLE 2 — ROYALTY AND PAYMENTS
2.1 Royalty Calculation. Licensee shall pay a royalty to Owner.
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a.
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Licensee shall pay Owner a royalty of 5% of Fair Market Value of:
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i.
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Licensed Product that is sold, leased or put into use by the Licensee or any Related Companies in the preceding calendar quarter; and
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ii.
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any service performed by Licensee or any Related Companies that directly or indirectly uses Licensed Product.
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b.
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This License does not include a minimum annual royalty payable by Licensee to Owner.
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2.2 Accrual.
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a.
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Obligations to pay royalties shall survive termination of this License and the expiration of any Patent, except the accrual of royalties shall cease upon termination of this License or the expiration of the subject Intellectual Property.
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b.
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When a company ceases to be a Related Company of the Licensee, royalties which have accrued with respect to any products of such company, but which have not been paid, shall become payable with the Licensee's next scheduled royalty payment.
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c.
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Notwithstanding any other provisions, royalty shall accrue and be payable only to the extent that enforcement of the Licensee's obligation to pay such royalty would not be prohibited by applicable law.
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2.3 Records and Adjustments.
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a.
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The Licensee shall keep full, clear and accurate records with respect to all Licensed Products and shall furnish any information which Owner may reasonably request from time to time to enable Owner to ascertain the proper royalty due on account of (a) Licensed Products sold, leased and put into use by the Licensee or any of its Related Companies, and (b) services performed by Licensee or any of its Related Companies that directly or indirectly uses Licensed Product. Owner shall have the right through its accredited auditors to make an examination, during normal business hours, of all records and accounts bearing upon the amount of royalty payable to him. Prompt adjustment shall be made to compensate for any errors or omissions disclosed by such examination.
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b.
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Independent of any such examination, Owner will credit to the Licensee the amount of any overpayment of royalties made in error only if Licensee identifies and fully explains in a written notice to Owner delivered within twelve (12) months after the due date of the payment which included such alleged overpayment, provided that Owner is able to verify, to its own satisfaction, the existence and extent of the overpayment.
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c.
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No refund, credit or other adjustment of royalty payments shall be made by Owner except as provided in this Section 2.3. Rights conferred by this Section 2.3 shall not be affected by any statement appearing on any check or other document, except to the extent that any such right is expressly waived or surrendered by a party having such right and signing such statement.
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2.4 Reports and Payments.
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a.
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Within thirty (30) days after the end of each quarterly period ending on March 31
st
, June 30
th
, September 30
th
, or December 31
st
, commencing with the quarterly period during which this Agreement becomes effective, the Licensee shall furnish to Owner at the address specified by Section 7.5 a statement certified by a responsible official of the Licensee showing in a manner acceptable to Owner:
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i.
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all Licensed Products which were sold, leased or put into use during such quarterly period by the Licensee or any of its Related Companies, the gross sales received for the Licensed Products, and the Fair Market Values of such Licensed Products;
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ii.
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all services performed by Licensee or any of its Related Companies that directly or indirectly used Licensed Product, the gross sales received by the services, and the Fair Market Value of such services;
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iii.
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the amount of royalty payable thereon, and
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iv.
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if no Licensed Product has been so sold, leased or put into use or if no services have been performed, the statement shall show that fact.
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b.
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Within such thirty (30) days, the Licensee shall pay in United States dollars to Owner at the address specified by Section 7.5 the royalties payable in accordance with such statement. Any conversion to United States dollars shall be at the prevailing rate for bank cable transfers as quoted for the last day of such quarterly period by leading United States banks in New York City dealing in the foreign exchange market.
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c.
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Overdue payments hereunder shall be subject to a late payment charge calculated at an annual rate of three percent (3%) over the prime rate or successive prime rates (as posted in New York City) during delinquency. If the amount of such charge exceeds the maximum permitted by law, such charge shall be reduced to such maximum.
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2.5 Intellectual Property Rights.
Owner shall have no obligation to license or assign any future patents, trademarks, or trade secrets except as specifically and explicitly granted by this Agreement.
2.6 Return of Royalty. Except as provided by Section 2.3(b),
Owner shall have no duty to return to Licensee any prior payments.
ARTICLE 3 – INTELLECTUAL PROPERTY PROSECUTION AND COSTS
3.1 Costs.
Licensee shall reimburse Owner for all IP Costs incurred on behalf of Licensee. Licensee shall also be liable for pre-paid IP Costs incurred prior to the Effective Date of this Agreement, including the costs of provisional and non-provisional applications that are filed to preserve Intellectual Property. Reimbursement for pre-paid IP Costs shall occur within 12 months of the Effective Date or within 3 months of the Effective Date, whichever is greater.
3.2 Extension of Application.
By written notice to Owner and at least ninety (90) days before the non-extendable due date for the filing of a national phase application of an Application, Licensee shall elect those countries or authorities in which it desires to file a patent application based on the Application. Intellectual Property rights in an unelected country shall revert to Owner.
3.3 Notice to Licensee.
Before payment of any IP Cost, Owner shall notify Licensee for a time period being the lesser of (i) at least sixty (60) days before the IP Cost is due or (ii) as soon as is practicable after receiving knowledge of the IP Cost. The notice will identify (i) the Application, Patent, or Trademark, (ii) the country, (iii) the reason for the IP Cost, and (iv) the Due Date for payment. Licensee shall then affirm or deny payment. Affirmation of payment must be received by Owner within fourteen (14) days of the mailing date of the notice or the Licensee shall be deemed to have denied payment.
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a.
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If Licensee affirms a payment, Licensee shall reimburse Owner for all IP Costs arising from the payment and shall then retain its license for the Application, Patent or Trademark in that country.
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b.
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If Licensee denies payment, Licensee shall have no obligation to pay IP Costs associated with the Application, Patent or Trademark in that country, but the license and all associated rights for that Application, Patent or Trademark shall revert to Owner.
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3.4 Reimbursement by Licensee.
Licensee shall prepay Owner for any affirmed IP Cost before payment is to be made by Owner. Owner shall have no duty to pay an IP Cost for which Owner does not receive prepayment. If Licensee does not pay Owner by the Due Date, the Application, Patent or Trademark shall revert to Owner as if Licensee had denied payment under section 3.3(b).
3.5 Reversion of License.
If a reversion occurs under this Article, the license in that country in which reversion has occurred will be terminated, and Licensee shall have no further right in the Application, Patent or Trademark for that country. The right shall revert to Owner who will then have the right to pursue protection for the reverted Application, Patent or Trademark. Owner has no further duty to Licensee for a reverted Application, Patent or Trademark.
ARTICLE 4 – TRADEMARK
4.1 Use of Trademark.
Licensee shall prominently use the Trademark on Licensed Products.
4.2 Owner Approval.
In order to protect and preserve Owner’s rights in the Trademarks, Licensee understands, acknowledges, and agrees that (i) prior to the first date of Licensee's use of the Trademarks in connection with Licensed Product, Licensee shall obtain Owner’s approval of all aspects of such use; and (ii) once Licensee's use of the Trademarks in connection with the Licensed Products is initially approved by Owner, any subsequent alteration, modification, or change in such use must be reviewed and approved by Owner prior to implementation of such alteration, modification, or change.
4.3 Trademark Format.
Owner retains the right to specify, from time to time, the format in which Licensee shall use and display the Trademarks, and Licensee shall only use or display the Trademarks in a format approved by Owner.
4.4 Proper Notice and Acknowledgment.
Every use of the Trademarks by Licensee shall incorporate in an appropriate manner the legal status of the Trademarks, that is, a superscript “TM” for unregistered marks and an "R" enclosed by a circle or the phrase "Reg. U.S. Pat. & Tm Off." for registered marks.
4.5 Impairment of Owner's Rights.
Licensee shall not at any time, whether during or after the term of this Agreement, do or cause to be done any act or thing challenging, contesting, impairing, invalidating, or tending to impair or invalidate any of Owner's rights in the Trademarks or any registrations derived from such rights.
4.6 Owner's Rights and Remedies.
Licensee acknowledges and agrees that Owner has, shall retain, and may exercise, both during the term of this Agreement and thereafter, all rights and remedies available to Owner, whether derived from this Agreement, from statute, or otherwise, as a result of or in connection with Licensee's breach of this Agreement, misuse of the Trademarks, or any other use of the Trademarks by Licensee which is not expressly permitted by this Agreement.
4.7 Owner’s Right to Inspect.
Owner shall have the right to inspect, upon reasonable notice, the use of the Trademarks by the Licensee and the quality and type of goods on which Licensee uses the Trademarks. Owner may, at its sole discretion, require Licensee to remove the mark from the goods.
ARTICLE 5 – INDEMNIFICATION,VALIDITY, AND INSURANCE
5.1 Validity. Licensee agrees that the Patents are valid and enforceable.
5.2 Enforceability.
Licensee and its Related Companies shall take no action, directly or indirectly, that challenges, contests, impairs, invalidates, or tends to impair or invalidate any of Owner's rights in the Patents.
5.3 Indemnification.
Licensee shall indemnify and hold harmless Owner, and its Member(s), officers, directors, managers, owners, employees, medical and professional staff, agents, successors, and assigns (“Indemnitee(s)”) to the fullest extent permitted by law in any Lawsuit by Licensee, Related Companies, or a third party (or third parties). Indemnification shall include any and all Litigation Costs. Licensee shall pay the Litigation Costs in advance of the final disposition of such action, suit, or proceeding, in accordance with Section 5.4 herein. Licensee shall require its sublicensees to indemnify, and hold harmless Owner and all Indemnitee(s) under the same terms as stated in this Article 5. Owner and its Member(s), officers, directors, managers, owners, employees, medical and professional staff, agents, successors, and assigns shall not be liable for any indirect, special, consequential, or other damages whatsoever, whether grounded in tort (including negligence), strict liability, contract or otherwise. Owner and all Indemnitees shall not have any responsibilities or liabilities whatsoever with respect to Licensed Product(s).
5.4 Payment of Litigation Costs.
Litigation Costs shall be paid by Licensee promptly, in advance of the final disposition of any Lawsuit, and in any event within thirty (30) days, upon the written request of Owner, or any Indemnitee. In the event Litigation Costs include a court ordered payment, Owner can submit the court order to Licensee and Licensee shall pay the court ordered payment to Owner.
5.5 Insurance Coverage.
a) Beginning at the time and in each country where the Licensed Product or
Intellectual Property, or any modification thereof, process, or any service relating to, or developed pursuant to, this Agreement, is being clinically tested with human subjects, administered to humans, manufactured, or commercially distributed or sold, whichever comes first, by Licensee, an affiliate or agent of Licensee, or by a sublicensee, Licensee shall, at its sole cost and expense, procure and maintain in effect a policy or policies of comprehensive general liability insurance and shall name Owner and each of its Member(s), officers, directors, managers, owners, employees, professional staff, agents, successors, and assigns as additional insured parties. Such comprehensive general liability insurance shall provide minimum comprehensive general liability coverage in amounts not less than ten million dollars ($10,000,000) per incident and ten million dollars ($10,000,000) annual aggregate for death, personal injury, bodily injury, illness or property damage. Further, coverage shall protect at least against acts of Licensee’s employees and officers; injuries to the public resulting from faulty products or services; contractual agreements under which liability of others is assumed; comprehensive general liability; and broad form contractual liability coverage for Licensee's indemnification obligations under Article 5 of this Agreement. Such insurance shall be written to cover claims incurred, discovered, manifested, or made during or after the expiration of this Agreement and shall be placed with carriers with ratings of at least A- as rated by A.M. Best. The minimum amounts of insurance coverage required shall not be construed to create a limit of Licensee’s liability with respect to its indemnification under this Agreement.
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b.
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Licensee shall provide Owner with written evidence of such insurance and related endorsements upon request of Owner. Licensee shall provide Owner with written notice at least fifteen (15) days prior to the cancellation, non-renewal or material change in such insurance; if Licensee does not obtain replacement insurance providing comparable coverage within such fifteen (15) day period, Owner shall have the right to terminate this Agreement effective at the end of such fifteen (15) day period without notice or any additional waiting periods.
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c.
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Licensee shall maintain such comprehensive general liability insurance and products liability insurance beyond the expiration or termination of this Agreement during the period that any Licensed Product is being commercially distributed or sold by Licensee, an affiliate or agent of Licensee, or by a sublicensee and a reasonable period after the period referred to above, which in no event shall be less than fifteen (15) years.
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ARTICLE 6 — TERMINATION AND LEGAL FEES
6.1 Breach.
In the event of a breach of this Agreement by either party, the other party may, in addition to any other remedies that it may have, at any time terminate all licenses and rights granted by it hereunder by not less than one (1) month’s written notice specifying such breach, unless within the period of such notice all breaches specified therein shall have been remedied. The failure of a party to notify a breaching party shall not be considered a waiver.
6.2 Insolvency or Dissolution.
Owner, at its sole discretion, may terminate this Agreement if:
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a.
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Licensee becomes insolvent, declares bankruptcy, has a petition in bankruptcy filed for or against it, or fails to make any payment required by this Agreement within thirty (30) days of its due date;
|
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b.
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Licensee dissolves or attempts to dissolve either voluntarily or involuntarily;
|
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c.
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Licensee becomes a wholly owned subsidiary of another business entity and Owner’s written consent is not first obtained;
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d.
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Licensee has a corporate merger with another business entity and Owner’s written consent is not first obtained; or
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e.
|
There is a liquidation, dissolution, or winding up of Licensee. A reorganization or other consolidation, or merger of Licensee with or into another Corporation or entity shall be deemed to be a liquidation, dissolution or winding up of Licensee and this license Agreement will terminate if the prior written consent of Owner has not been obtained.
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6.3 Stock.
Owner may terminate this Agreement if Licensee devalues or attempts to devalue the stock, including any class of stock, or any stock options, or warrants (collectively, the “Stock”) that is ever, or was ever, issued by Licensee to Owner, or any of Owner’s Member(s). Devalue means (a) cancelling the Stock, (b) impairing the right to sell or leverage the Stock, or (c) implementing a reverse split of Licensee’s common shares or any other class of Licensee’s stock, if Owner has not provided its written consent. Further, until six (6) months from the effective date of this Agreement, no share of capital stock of Licensee, option or warrant for any such share, right to subscribe to or purchase any such share, or security convertible into, or exchangeable or exercisable for, any such share, shall
be issued or sold by the Licensee, with
the exception of Licensee corporate transactions with respect to which written consent has been received from Owner; and nonperformance of this covenant by Licensee will be a material breach of this Agreement.
6.4 Effect of Termination.
Upon any termination of this Agreement:
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a.
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all rights shall immediately revert to Owner free of any lien, security interest, or other encumbrance;
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b.
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Licensee may, for up to 60 days continue to sell and offer for sale its remaining inventory of Licensed Products, and on the 61
st
day destroy or offer for sale to Owner such remaining inventory;
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c.
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Licensee shall pay royalties per Article 2, and shall pay all royalties within 90 days of the termination date;
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d.
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Licensee shall provide Owner with all copies of research data, records, notes, memorandum, and reports that were obtained from research or development efforts arising from the Applications, Patents, Intellectual Property, or Licensed Product.
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6.5 Dispute Costs.
In the event of a dispute between Owner, or any of its Member(s), and Licensee, Licensee shall pay any and all costs and expenses arising from the dispute. Dispute costs can include, but are not limited to, attorneys’ fees and costs, prosecution fees, travel expenses, court costs, fines, penalties, expert witness fees, and any settlement. Such costs and expenses shall be paid by Licensee promptly, in advance of the final disposition of such dispute, and in any event within thirty (30) days, upon the written request of Owner or any of Owner’s Member(s).
6.6 Public Company.
Owner has the option of terminating this Agreement if Licensee’s stock is not publically traded on the open market on a financial exchange by October 30, 2011 and/or does not continue to be publicly traded on the open market on a financial exchange as of October 30, 2011. This termination option shall survive for so long as this condition persists.
6.7
Duty of Diligence.
Licensee shall exercise reasonable diligence to affect the introduction of Licensed Products into the commercial market. Licensee further agrees to ensure proper, safe, fair, lawful and reasonable development and exploitation of the commercial market for Licensed Products. Failure of Licensee to materially comply with the provisions of this paragraph shall be considered a material breach of this Agreement.
6.8 Premier Biomed, Inc. Litigation.
Should Licensee, or any of its Directors or Officers, by reason of the fact that he or she is a Director or Officer of Licensee, become a party to an action, litigation or arbitration with another corporation, business entity, or involving a Court Appointed Receiver; or become the subject of any Securities and Exchange Commission action, prior to March 1, 2013, this License Agreement may be terminated at the option of Owner.
ARTICLE 7 — MISCELLANEOUS PROVISIONS
7.1 Disclaimer.
Owner does not make any representations, extend any warranties of any kind, assume any responsibility or obligations whatever, or confer any right by implication, estoppel or otherwise, other than the licenses, rights and warranties herein expressly granted. Owner makes no warranties whether express, implied or statutory, written or oral.
Owner expressly
DISCLAIMS ANY WARRANTY OF MERCHANTABILITY OR OF FITNESS FOR A PARTICULAR PURPOSE.
Owner also disclaims any warranty arising from (a) a claim against an Application, Patent or Trademark, or (b) a course of dealing or trade usage.
7. 2 Representations, Warranties, and Agreements by Licensee.
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a.
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Licensee is a corporation duly organized, validity existing and in good standing under the laws of Nevada with full power and authority to own, lease, use, and operate its properties and to carry on its business as and where now owned, leased, used, operated and conducted. Licensee has all requisite corporate power and authority to enter into and perform this Agreement and to consummate and effect the transactions contemplated by this Agreement.
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b.
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All consents, approvals, orders, or authorizations of, or registrations, qualifications, designations, declarations, or filings with, any governmental authority required on the part of Licensee in connection with the valid execution and delivery of this Agreement, the offer, sale or issuance of any stock to Owner, or the consummation of any other transactions contemplated hereby shall have been obtained.
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c.
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Subject to and in accordance with Security and Exchange Commission regulations, and other legal regulations and laws, Licensee will support the timely removal of the restriction on the shares of Licensee stock that Owner may own, or any Member may own. Licensee, at Licensee’s expense, will make a reasonable effort to provide within ten business days of Owner’s request, or any Member’s request, an opinion of corporate counsel and any other documentation that may be required to remove the restriction in accordance with applicable laws and regulations. Licensee will not in any way inhibit the lawful transfer of the Licensee stock held by Owner, or by any Member, manager, consultant, or employee of Owner.
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d.
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Licensee agrees that as of October 30, 2011, and continuing thereafter, to at all times:
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1.
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make and keep public information available to its stockholders, as those terms are understood and defined in SEC Rule 144, after 90 days after the effective date of the first registration filed by Licensee for an offering of its securities to the general public, and Licensee will provide this current information no later than October 30, 2011; and
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2.
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file with the SEC in a timely manner all reports and other documents required of Licensee under the Securities and Exchange Act (at any time after Licensee has become subject to such reporting requirements).
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e.
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Licensee represents and warrants that there will be no reverse or forward stock split to the corporate shares of Licensee, including all classes of shares of Licensee, without first obtaining the written consent of Owner.
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f.
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The representations and warranties of Licensee, contained in this Agreement, shall have been true in all material respects when made, and, in addition, shall be true and correct in all material respects as of the Effective Date, and except for changes contemplated and permitted by this Agreement, with the same force and effect as if made as of the Effective Date.
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7.3 DELETED
7.4 Nonassignability.
The parties have entered into this agreement in contemplation of personal performance, each by the other, and intend that the licenses and rights granted hereunder to a party not be extended to entities other than such party's Related Companies without the other party's express written consent. All of Owner's rights, title and interest in this agreement and any licenses and rights granted to it hereunder may be assigned to any direct or indirect successor to the business of Owner, which successor shall thereafter be deemed substituted for Owner as the party hereto, effective upon such assignment; but neither this agreement nor any licenses or rights hereunder shall be otherwise assignable or transferable (in insolvency proceedings, by reason of a corporate merger, or otherwise) by either party without the express written consent of the other party.
7.5
Addresses/Accounts.
Any notice, payments, or other communication shall be sufficiently given to a party when sent by:
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a.
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Certified mail or overnight courier to the address written above.
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b.
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Facsimile to Owner at______________ or to Licensee at___________________.
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c.
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Email to Owner at______________ or to Licensee at___________________.
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A party may change its address, facsimile number, or email address only by express written notice to the other party.
7.6 Taxes.
Licensee shall pay any tax and any related interest or penalty, however designated, imposed as a result of the existence or operation of this Agreement, including any tax which the Licensee is required to withhold or deduct from payments to Owner, except any income tax imposed upon Owner by the United States or any governmental entity within the United States.
Licensee shall furnish Owner with such evidence as may be required by United States taxing authorities to establish that any such tax has been paid.
7.7 Choice of Law.
Any dispute arising with respect to this Agreement shall be construed according to the law, exclusive of its conflict of law provisions, of the state in which the Owner is domiciled at the time the complaint is filed. If such state cannot be determined, the law of the Commonwealth of Pennsylvania, exclusive of conflict of law provisions, shall govern this Agreement.
7.8 Integration.
This Agreement sets forth the entire agreement and understanding between the parties as to the subject matter hereof and merges all prior discussions between them. Neither party shall be bound by any warranties, understandings or representations with respect to such subject matter other than as expressly provided herein or in a writing signed with or subsequent to execution hereof by an authorized representative of the party to be bound thereby.
7.9 Outside the United States
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a.
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There are countries in which the owner of an invention is entitled to compensation, damages or other monetary award for another's unlicensed manufacture, sale, lease, use or importation involving such invention prior to the date of issuance of a patent for such invention but on or after a certain earlier date, hereinafter referred to as the invention's “protection commencement date.” For the purposes of this agreement, an invention which has a protection commencement date in any such country shall be deemed to have had a patent issued therefor in such country on such date.
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b.
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There may be countries in which the Licensee may have, as a consequence of this Agreement, rights against an infringer of a Licensed Product. Licensee hereby waives any such right it may have by reason of any third party’s infringement or alleged infringement of Intellectual Property.
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c.
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Licensee agrees to register or cause to be registered, to the extent required by applicable law, and without expense to Owner, any agreements wherein sublicenses are granted by it under the Applications or Patents. Licensee waives any and all claims or defenses, arising by virtue of the absence of such registration, that might otherwise limit or affect its obligations to Owner.
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7.10 Counterparts.
This Agreement is executed in one or more counterparts as the parties deem desirable, each of which shall be deemed an original, but all of which shall constitute the same instrument. No action or suit shall require the production of all such copies.
7.11 Export Control Laws.
Licensee shall observe all applicable United States and foreign laws with respect to the transfer of Licensed Product(s), and related technical data, to foreign countries, including, without limitation, export administration regulations.
7.12 Licensee Able to Perform.
Licensee has had full disclosure and had opportunity to do due diligence to the extent it determined to be necessary and reasonable in regard to the Owner's Applications, Patent(s), Trademarks, Licensed Product(s), technology and business. Licensee acknowledges that Owner has made no representation other than is contained herein. Licensee represents that it is capable of researching, developing, obtaining regulatory approvals, and manufacturing the Licensed Products, and is aware of the difficulties inherent in the regulatory aspects, research, development, manufacturing, sale and distribution of the licensed products. Licensee acknowledges that Owner shall have no liability in regard to Licensee's success or failure of the anticipated sales or sublicense.
7.13 Confidentiality.
Except as otherwise agreed in writing or as required by government statute or court order, Licensee shall not appropriate, use or disclose, directly or indirectly, for its own benefit or otherwise, any information, materials, trade secrets, documents, correspondence, or other tangible or intangible property of Owner, to which it shall have obtained access hereunder or in contemplation of this Agreement, or which shall otherwise in any way relate to the Intellectual Property. Any of the aforesaid which is or comes into the possession of Licensee shall be held in trust for Owner and remain the sole and exclusive property of Owner, subject to the rights of License by Licensee as provided herein. The provisions of this Paragraph shall survive the termination of this Agreement.
7.14 No Joint Venture.
The parties acknowledge that nothing set forth in this Agreement nor the transactions contemplated herein shall constitute a joint venture, partnership, agency or any relationship other than Licensee as a licensee and Owner as a licensor of the Intellectual Property.
7.15 Unauthorized Use.
Licensee agrees to notify Owner immediately and in writing of all circumstances surrounding the unauthorized possession or use of the Intellectual Property by any entity including, but not limited to, an individual, governmental authority, corporation, limited liability company, partnership, or trust. Owner shall have the sole right and discretion to institute and prosecute a claim against any third party for infringement of Intellectual Property. This Agreement imposes no duty on Owner to file any claim.
7.16 Severability.
If any term or provision of this Agreement is held invalid or unenforceable by a court of competent jurisdiction, the remainder of the provisions shall continue in full force and effect as if this Agreement had been executed with the invalid or unenforceable portion thereof eliminated and the parties shall endeavor to replace such invalid or unenforceable portion with a similar but valid and enforceable provision.
7.17 Force Majeure.
No party shall be deemed to be in default of any provision of this Agreement, or for any failure in performance, resulting from acts or events beyond the reasonable control of such party, including acts of God, acts of civil or military authority, civil disturbance, war, strikes, natural catastrophes or other “force majeure” events.
7.18 Headings.
The headings of the paragraphs of this Agreement are inserted for convenience only and shall not constitute a part hereof.
IN WITNESS WHEREOF, each of the parties has caused this agreement to be executed in duplicate originals by its duly authorized representatives on the Effective Date written above.
Altman Enterprises LLC Premier Biomed, Inc.
Signature:
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/s/ Mitchell S. Felder
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Signature:
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/s/ William A. Hartman
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Name:
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Mitchell S. Felder, M.D.
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Name:
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William A. Hartman
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Title:
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Member
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Title:
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President/CEO
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APPENDIX
“Applications” means PCT/US2009/062895, entitled Medication and Treatment for Disease.
all applications of the United States and foreign countries that claim priority to the above PCT applications, including any non-provisionals, continuations, continuations-in-part, divisions, reissues, re-examinations or extensions thereof.
“Due Date” means a date set by the Owner that would permit it a reasonable time period to respond to an official action. The Due Date will be at least two (2) business days before any official due date exclusive of any permitted extensions of time.
“Effective Date” means the date indicated as the effective date at the top of page 1 of this Agreement.
“Fair Market Value” means, with respect to any Licensed Product sold, leased or put into use, the Selling Price actually obtained in an arm’s length transaction for a product comprising a Licensed Product in the form in which the product is sold, whether or not assembled and without excluding any components or subassemblies thereof which are included in such Selling Price. “Selling price" shall exclude:
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a.
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usual trade discounts actually allowed to unaffiliated persons or entities;
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c.
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costs of transportation and transportation insurance; and
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d.
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import, export, excise, sales and value added taxes, and custom duties.
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“Intellectual Property” means any and all Applications, Patents, Trademarks, copyrights and trade secrets, that are owned in whole or in part by Owner and arise from the Applications, Patents or Trademarks.
“IP Cost” means any and all expenses arising from obtaining or maintaining Intellectual Property in the U.S. and foreign countries, including, but not limited to, government fees, attorneys’ fees, translation fees, maintenance fees, annuities, penalties, and interests.
“Lawsuit” means any action at law or equity, including, but not limited to, any and all claims for death, illness, personal injury, property damages, damages, expenses, losses, costs, and improper business practices, arising from or related to:
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a.
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the manufacture, use, license, sublicense, research, sale, offer for sale, other disposition of the Intellectual Property, or regulatory action involving the Intellectual Property;
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b.
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any challenge by a third party to the ownership or other rights of Owner in the Intellectual Property; or
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c.
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Owner or any Member being made a party or threatened to be made a party to, or otherwise involved (including involvement as a witness) in any action, suit or
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proceeding, whether civil, criminal, administrative or investigative (i) by reason of the fact that Owner, or any Member, is or was affiliated with the Intellectual Property, or (ii) by reason of the fact that a Member, employee, or agent of Owner is or was serving at the request of Licensee as a director, officer, employee, consultant, manager, representative, or agent of Licensee or other business entity or enterprise.
“Licensed Product” means any product that incorporates the Intellectual Property.
“Litigation Cost(s)” means any and all expenses, losses, and liabilities, arising from a Lawsuit, including, but not limited to, prosecution fees, attorneys’ fees, and expenses, loss of anticipated royalties or profits, any other business losses, litigation fees, fines, penalties, interests, travel expenses, court costs, expert witness fees, settlements, judgments, personal injuries, costs of collection,and government fees.
“Member(s)” means a member, an owner, or co-owner of Owner.
“Patents” means all patents (including utility models but excluding design patents and design registrations) issued in any country that (a) claim substantially the same subject matter as at least one Application and (b) claim priority to that Application.
“Related Companies” means (a) a subsidiary of the Licensee of which Licensee owns more than 80% of the subsidiary’s outstanding common stock, and (b) any other company so designated in a writing signed by Owner and the Licensee.
“Trademarks” mean Feldetrex™, including US Trademark Application No. 77/601,101 and any identical marks later filed in countries other than the United States of America.
LICENSE AGREEMENT
This Patent License Agreement (“the Agreement”) is effective this
12 day of May, 2010
between:
Marv Enterprises, LLC (“Owner”), having an address at P.O. Box 1332, Hermitage, Pennsylvania 16148; and
Premier Biomed, Inc. (“Licensee”), a Nevada corporation, having an office at:
1362 Springfield Church Rd., Jackson Center, Pa. 16133.
The parties intending to be legally bound agree as follows.
ARTICLE 1 — GRANT OF LICENSES
1.1 Grant.
Subject to the terms of this Agreement, Owner grants to Licensee exclusive, nontransferable licenses for the Applications and the Patents.
1.2 Duration.
Subject to the terms of this Agreement, all licenses granted herein:
a)
under any Patents or Applications shall continue for the entire unexpired term of such patent or for as much of such term as the Owner has the right to grant.
1.3 Scope. The licenses granted herein are licenses to:
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a.
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make, have made, use, lease, sell and import Licensed Products for the legal purposes of researching, developing, manufacturing, assembling, distributing, and selling the Licensed Products;
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b.
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make, have made, use and import machines, tools, materials and other instrumentalities, insofar as such machines, tools, materials and other instrumentalities are involved in or incidental to the research, development, manufacture, testing or repair of Licensed Products which are or have been made, used, leased, owned, sold or imported by the Licensee; and
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c.
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convey to any customer of the Licensee, with respect to any Licensed Product which is sold or leased to such customer, rights to use and resell such Licensed Product as sold or leased by Licensee (whether or not as part of a larger combination); provided, however, that no rights may be conveyed to customers with respect to any Invention which is directed to (i) a combination of such Licensed Product (as sold or leased) with any other product, (ii) a method or process which is other than the inherent use of such
Licensed Product itself (as
sold or leased), or (iii) a method or process involving the use of a Licensed Product to manufacture (including associated testing) any other product.
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Licenses granted herein are solely for products in the form sold by the Licensee and are not to be construed either (i) as consent by the Owner to any act which may be performed by the Licensee, except to the extent impacted by a patent licensed herein to the Licensee, or (ii) to include licenses to contributorily infringe or induce infringement under U.S. law or a foreign equivalent thereof.
The grant of each license hereunder includes the right to grant sublicenses to Related Companies for so long as it remains a Related Companies. Any such sublicense may be made effective retroactively, but not prior to the effective date hereof, nor prior to the sublicensee's becoming a Related Companies.
1.4 Ability to Provide Licenses.
Owner warrants that, upon execution hereof by him and as of the effective date hereof, there are no known commitments or restrictions which limit the licenses and rights which are purported to be granted hereunder by him.
1.5 Publicity.
Nothing in this Agreement shall be construed as conferring upon either party or its Related Companies any right to include in advertising, packaging or other commercial activities related to a Licensed Product, any reference to the other party (or any of its Related Companies), its trade names, trademarks or service marks in a manner which would be likely to cause confusion or to indicate that such Licensed Product is in any way certified by the other party hereto or its Related Companies.
1.6 Good Faith.
Licensee understands that this Agreement is not predicated on any specific grant of patent or trademark registration. Owner shall have no liability for a failure to pursue or obtain any specific patent or trademark.
ARTICLE 2 — ROYALTY AND PAYMENTS
2.1 Royalty Calculation.
Licensee shall pay a royalty to Owner.
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a.
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Licensee shall pay Owner a royalty of 5% of Fair Market Value of:
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i.
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Licensed Product that is sold, leased or put into use by the Licensee or any Related Companies in the preceding calendar quarter; and
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ii.
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any service performed by Licensee or any Related Companies that directly or indirectly uses Licensed Product.
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b.
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This License does not include a minimum annual royalty payable by Licensee to Owner.
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2.2 Accrual.
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a.
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Obligations to pay royalties shall survive termination of this License and the expiration of any Patent, except the accrual of royalties shall cease upon termination of this License or the expiration of the subject Intellectual Property.
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b.
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When a company ceases to be a Related Company of the Licensee, royalties which have accrued with respect to any products of such company, but which have not been paid, shall become payable with the Licensee's next scheduled royalty payment.
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c.
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Notwithstanding any other provisions, royalty shall accrue and be payable only to the extent that enforcement of the Licensee's obligation to pay such royalty would not be prohibited by applicable law.
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2.3 Records and Adjustments.
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a.
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The Licensee shall keep full, clear and accurate records with respect to all Licensed Products and shall furnish any information which Owner may reasonably request from time to time to enable Owner to ascertain the proper royalty due on account of (a) Licensed Products sold, leased and put into use by the Licensee or any of its Related Companies, and (b) services performed by Licensee or any of its Related Companies that directly or indirectly uses Licensed Product. Owner shall have the right through its accredited auditors to make an examination, during normal business hours, of all records and accounts bearing upon the amount of royalty payable to him. Prompt adjustment shall be made to compensate for any errors or omissions disclosed by such examination.
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b.
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Independent of any such examination, Owner will credit to the Licensee the amount of any overpayment of royalties made in error only if Licensee identifies and fully explains in a written notice to Owner delivered within twelve (12) months after the due date of the payment which included such alleged overpayment, provided that Owner is able to verify, to its own satisfaction, the existence and extent of the overpayment.
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c.
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No refund, credit or other adjustment of royalty payments shall be made by Owner except as provided in this Section 2.3. Rights conferred by this Section 2.3 shall not be affected by any statement appearing on any check or other document, except to the extent that any such right is expressly waived or surrendered by a party having such right and signing such statement.
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2.4 Reports and Payments.
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a.
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Within thirty (30) days after the end of each quarterly period ending on March 31
st
, June 30
th
, September 30
th
, or December 31
st
, commencing with the quarterly period during which this Agreement becomes effective, the Licensee shall furnish to Owner at the address specified by Section 7.5 a statement certified by a responsible official of the Licensee showing in a manner acceptable to Owner:
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i.
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all Licensed Products which were sold, leased or put into use during such quarterly period by the Licensee or any of its Related Companies, the gross sales received for the Licensed Products, and the Fair Market Values of such Licensed Products;
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ii.
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all services performed by Licensee or any of its Related Companies that directly or indirectly used Licensed Product, the gross sales received by the services, and the Fair Market Value of such services;
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iii.
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the amount of royalty payable thereon, and
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iv.
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if no Licensed Product has been so sold, leased or put into use or if no services have been performed, the statement shall show that fact.
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b.
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Within such thirty (30) days, the Licensee shall pay in United States dollars to Owner at the address specified by Section 7.5 the royalties payable in accordance with such statement. Any conversion to United States dollars shall be at the prevailing rate for bank cable transfers as quoted for the last day of such quarterly period by leading United States banks in New York City dealing in the foreign exchange market.
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c.
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Overdue payments hereunder shall be subject to a late payment charge calculated at an annual rate of three percent (3%) over the prime rate or successive prime rates (as posted in New York City) during delinquency. If the amount of such charge exceeds the maximum permitted by law, such charge shall be reduced to such maximum.
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2.5 Intellectual Property Rights
. Owner shall have no obligation to license or assign any future patents, trademarks, or trade secrets except as specifically and explicitly granted by this Agreement.
2.6 Return of Royalty.
Except as provided by Section 2.3(b),
Owner shall have no duty to return to Licensee any prior payments.
ARTICLE 3 – INTELLECTUAL PROPERTY PROSECUTION AND COSTS
3.1 Costs.
Licensee shall reimburse Owner for all IP Costs incurred on behalf of Licensee. Licensee shall also be liable for pre-paid IP Costs incurred prior to the Effective Date of this Agreement, including the costs of provisional and non-provisional applications that are filed to preserve Intellectual Property. Reimbursement for pre-paid IP Costs shall occur within 12 months of the Effective Date or within 3 months of the Effective Date, whichever is greater.
3.2 Extension of Application.
By written notice to Owner and at least ninety (90) days before the non-extendable due date for the filing of a national phase application of an Application, Licensee shall elect those countries or authorities in which it desires to file a patent application based on the Application. Intellectual Property rights in an unelected country shall revert to Owner.
3.3 Notice to Licensee.
Before payment of any IP Cost, Owner shall notify Licensee for a time period being the lesser of (i) at least sixty (60) days before the IP Cost is due or (ii) as soon as is practicable after receiving knowledge of the IP Cost. The notice will identify (i) the Application or Patent, (ii) the country, (iii) the reason for the IP Cost, and (iv) the Due Date for payment. Licensee shall then affirm or deny payment. Affirmation of payment must be received by Owner within fourteen (14) days of the mailing date of the notice or the Licensee shall be deemed to have denied payment.
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a.
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If Licensee affirms a payment, Licensee shall reimburse Owner for all IP Costs arising from the payment and shall then retain its license for the Application or Patent in that country.
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b.
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If Licensee denies payment, Licensee shall have no obligation to pay IP Costs associated with the Application or Patent in that country, but the license and all associated rights for that Application or Patent shall revert to Owner.
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3.4 Reimbursement by Licensee.
Licensee shall prepay Owner for any affirmed IP Cost before payment is to be made by Owner. Owner shall have no duty to pay an IP Cost for which Owner does not receive prepayment. If Licensee does not pay Owner by the Due Date, the Application or Patent shall revert to Owner as if Licensee had denied payment under section 3.3(b).
3.5 Reversion of License.
If a reversion occurs under this Article, the license in that country in which reversion has occurred will be terminated, and Licensee shall have no further right in the Application or Patent for that country. The right shall revert to Owner who will then have the right to pursue protection for the reverted Application or Patent. Owner has no further duty to Licensee for a reverted Application or Patent.
ARTICLE 4 – DELETED
ARTICLE 5 – INDEMNIFICATION,VALIDITY, AND INSURANCE
5.1 Validity.
Licensee agrees that the Patents are valid and enforceable.
5.2 Enforceability.
Licensee and its Related Companies shall take no action, directly or indirectly, that challenges, contests, impairs, invalidates, or tends to impair or invalidate any of Owner's rights in the Patents.
5.3 Indemnification.
Licensee shall indemnify and hold harmless Owner, and its Member(s), officers, directors, managers, owners, employees, medical and professional staff, agents, successors, and assigns (“Indemnitee(s)”) to the fullest extent permitted by law in any Lawsuit by Licensee, Related Companies, or a third party (or third parties). Indemnification shall include any and all Litigation Costs. Licensee shall pay the Litigation Costs in advance of the final disposition of such action, suit, or proceeding, in accordance with Section 5.4 herein. Licensee shall require its sublicensees to indemnify, and hold harmless
Owner and all Indemnitee(s)
under the same terms as stated in this Article 5. Owner and its Member(s), officers, directors, managers, owners, employees, medical and professional staff, agents, successors, and assigns shall not be liable for any indirect, special, consequential, or other damages whatsoever, whether grounded in tort (including negligence), strict liability, contract or otherwise. Owner and all Indemnitees shall not have any responsibilities or liabilities whatsoever with respect to Licensed Product(s).
5.4 Payment of Litigation Costs
. Litigation Costs shall be paid by Licensee promptly, in advance of the final disposition of any Lawsuit, and in any event within thirty (30) days, upon the written request of Owner, or any Indemnitee. In the event Litigation Costs include a court ordered payment, Owner can submit the court order to Licensee and Licensee shall pay the court ordered payment to Owner.
5.5 Insurance Coverage.
a) Beginning at the time and in each country where the Licensed Product or
Intellectual Property, or any modification thereof, process, or any service relating to, or developed pursuant to, this Agreement, is being clinically tested with human subjects, administered to humans, manufactured, or commercially distributed or sold, whichever comes first, by Licensee, an affiliate or agent of Licensee, or by a sublicensee, Licensee shall, at its sole cost and expense, procure and maintain in effect a policy or policies of comprehensive general liability insurance and shall name Owner and each of its Member(s), officers, directors, managers, owners, employees, professional staff, agents, successors, and assigns as additional insured parties. Such comprehensive general liability insurance shall provide minimum comprehensive general liability coverage in amounts not less than ten million dollars ($10,000,000) per incident and ten million dollars ($10,000,000) annual aggregate for death, personal injury, bodily injury, illness or property damage. Further, coverage shall protect at least against acts of Licensee’s employees and officers; injuries to the public resulting from faulty products or services; contractual agreements under which liability of others is assumed; comprehensive general liability; and broad form contractual liability coverage for Licensee's indemnification obligations under Article 5 of this Agreement. Such insurance shall be written to cover claims incurred, discovered, manifested, or made during or after the expiration of this Agreement and shall be placed with carriers with ratings of at least A- as rated by A.M. Best. The minimum amounts of insurance coverage required shall not be construed to create a limit of Licensee’s liability with respect to its indemnification under this Agreement.
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b.
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Licensee shall provide Owner with written evidence of such insurance and related endorsements upon request of Owner. Licensee shall provide Owner with written notice at least fifteen (15) days prior to the cancellation, non-renewal or material change in such insurance; if Licensee does not obtain replacement insurance providing comparable coverage within such fifteen (15) day period, Owner shall have the right to terminate this Agreement effective at the end of such fifteen (15) day period without notice or any additional waiting periods.
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c.
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Licensee shall maintain such comprehensive general liability insurance and products liability insurance beyond the expiration or termination of this Agreement during the period that any Licensed Product is being commercially distributed or sold by Licensee, an affiliate or agent of Licensee, or by a sublicensee and a reasonable period after the period referred to above, which in no event shall be less than fifteen (15) years.
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ARTICLE 6 — TERMINATION AND LEGAL FEES
6.1 Breach.
In the event of a breach of this Agreement by either party, the other party may, in addition to any other remedies that it may have, at any time terminate all licenses and rights granted by it hereunder by not less than one (1) month’s written notice specifying such breach, unless within the period of such notice all breaches specified therein shall have been remedied. The failure of a party to notify a breaching party shall not be considered a waiver.
6.2 Insolvency or Dissolution
. Owner, at its sole discretion, may terminate this Agreement if:
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a.
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Licensee becomes insolvent, declares bankruptcy, has a petition in bankruptcy filed for or against it, or fails to make any payment required by this Agreement within thirty (30) days of its due date;
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b.
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Licensee dissolves or attempts to dissolve either voluntarily or involuntarily;
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c.
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Licensee becomes a wholly owned subsidiary of another business entity and Owner’s written consent is not first obtained;
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d.
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Licensee has a corporate merger with another business entity and Owner’s written consent is not first obtained; or
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e.
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There is a liquidation, dissolution, or winding up of Licensee. A reorganization or other consolidation, or merger of Licensee with or into another Corporation or entity shall be deemed to be a liquidation, dissolution or winding up of Licensee and this license Agreement will terminate if the prior written consent of Owner has not been obtained.
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6.3 Stock.
Owner may terminate this Agreement if Licensee devalues or attempts to devalue the stock, including any class of stock, or any stock options, or warrants (collectively, the “Stock”) that is ever, or was ever, issued by Licensee to Owner, or any of Owner’s Member(s). Devalue means (a) cancelling the Stock, (b) impairing the right to sell or leverage the Stock, or (c) implementing a reverse split of Licensee’s common shares or any other class of Licensee’s
stock, if Owner has not provided its written consent. Further, until six (6) months from the effective date of this Agreement, no share of capital stock of Licensee, option or warrant for any such share, right to subscribe to or purchase any such share, or security convertible into, or exchangeable or exercisable for, any such share, shall be issued or sold by the Licensee, with the exception of Licensee corporate transactions with respect to which written consent has been received from Owner; and nonperformance of this covenant by Licensee will be a material breach of this Agreement.
6.4 Effect of Termination.
Upon any termination of this Agreement:
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a.
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all rights shall immediately revert to Owner free of any lien, security interest, or other encumbrance;
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b.
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Licensee may, for up to 60 days continue to sell and offer for sale its remaining inventory of Licensed Products, and on the 61
st
day destroy or offer for sale to Owner such remaining inventory;
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c.
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Licensee shall pay royalties per Article 2, and shall pay all royalties within 90 days of the termination date;
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d.
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Licensee shall provide Owner with all copies of research data, records, notes, memorandum, and reports that were obtained from research or development efforts arising from the Applications, Patents, Intellectual Property, or Licensed Product.
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6.5 Dispute Costs.
In the event of a dispute between Owner, or any of its Member(s), and Licensee, Licensee shall pay any and all costs and expenses arising from the dispute. Dispute costs can include, but are not limited to, attorneys’ fees and costs, prosecution fees, travel expenses, court costs, fines, penalties, expert witness fees, and any settlement. Such costs and expenses shall be paid by Licensee promptly, in advance of the final disposition of such dispute, and in any event within thirty (30) days, upon the written request of Owner or any of Owner’s Member(s).
6.6 Public Company.
Owner has the option of terminating this Agreement if Licensee’s stock is not publically traded on the open market on a financial exchange by October 30, 2011 and/or does not continue to be publicly traded on the open market on a financial exchange as of October 30, 2011. This termination option shall survive for so long as this condition persists.
6.7 Duty of Diligence.
Licensee shall exercise reasonable diligence to affect the introduction of Licensed Products into the commercial market. Licensee further agrees to ensure proper, safe, fair, lawful and reasonable development and exploitation of the commercial market for Licensed Products. Failure of Licensee to materially comply with the provisions of this paragraph shall be considered a material breach of this Agreement.
6.8 Premier Biomed, Inc. Litigation.
Should Licensee, or any of its Directors or Officers, by reason of the fact that he or she is a Director or Officer of Licensee, become a party to an action, litigation or arbitration with another corporation, business entity, or involving a Court Appointed Receiver; or become the subject of any Securities and Exchange Commission action, prior to March 1, 2013, this License Agreement may be terminated at the option of Owner.
ARTICLE 7 — MISCELLANEOUS PROVISIONS
7.1 Disclaimer.
Owner does not make any representations, extend any warranties of any kind, assume any responsibility or obligations whatever, or confer any right by implication, estoppel or otherwise, other than the licenses, rights and warranties herein expressly granted. Owner makes no warranties whether express, implied or statutory, written or oral.
Owner expressly DISCLAIMS ANY WARRANTY OF MERCHANTABILITY OR OF FITNESS FOR A PARTICULAR PURPOSE. Owner also disclaims any warranty arising from (a) a claim against an Application or Patent, or (b) a course of dealing or trade usage.
7. 2 Representations, Warranties, and Agreements by Licensee.
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a.
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Licensee is a corporation duly organized, validity existing and in good standing under the laws of Nevada with full power and authority to own, lease, use, and operate its properties and to carry on its business as and where now owned, leased, used, operated and conducted. Licensee has all requisite corporate power and authority to enter into and perform this Agreement and to consummate and effect the transactions contemplated by this Agreement.
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b.
|
All consents, approvals, orders, or authorizations of, or registrations, qualifications, designations, declarations, or filings with, any governmental authority required on the part of Licensee in connection with the valid execution and delivery of this Agreement, the offer, sale or issuance of any stock to Owner, or the consummation of any other transactions contemplated hereby shall have been obtained.
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c.
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Subject to and in accordance with Security and Exchange Commission regulations, and other legal regulations and laws, Licensee will support the timely removal of the restriction on the shares of Licensee stock that Owner may own, or any Member may own. Licensee, at Licensee’s expense, will make a reasonable effort to provide within ten business days of Owner’s request, or any Member’s request, an opinion of corporate counsel and any other documentation that may be required to remove the restriction in accordance with applicable laws and regulations. Licensee will not in any way inhibit the lawful transfer of the Licensee stock held by Owner, or by any Member, manager, consultant, or employee of Owner.
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d.
|
Licensee agrees that as of October 30, 2011, and continuing thereafter, to at all times:
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1.
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make and keep public information available to its stockholders, as those terms are understood and defined in SEC Rule 144, after 90 days after the effective date of the first registration filed by Licensee for an offering of its securities to the general public, and Licensee will provide this current information no later than October 30, 2011; and
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2.
|
file with the SEC in a timely manner all reports and other documents required of Licensee under the Securities and Exchange Act (at any time after Licensee has become subject to such reporting requirements).
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e.
|
Licensee represents and warrants that there will be no reverse or forward stock split to the corporate shares of Licensee, including all classes of shares of Licensee, without first obtaining the written consent of Owner.
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f.
|
The representations and warranties of Licensee, contained in this Agreement, shall have been true in all material respects when made, and, in addition, shall be true and correct in all material respects as of the Effective Date, and except for changes contemplated and permitted by this Agreement, with the same force and effect as if made as of the Effective Date.
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7.3 DELETED
7.4 Nonassignability.
The parties have entered into this agreement in contemplation of personal performance, each by the other, and intend that the licenses and rights granted hereunder to a party not be extended to entities other than such party's Related Companies without the other party's express written consent. All of Owner's rights, title and interest in this agreement and any licenses and rights granted to it hereunder may be assigned to any direct or indirect successor to the business of Owner, which successor shall thereafter be deemed substituted for Owner as the party hereto, effective upon such assignment; but neither this agreement nor any licenses or rights hereunder shall be otherwise assignable or transferable (in insolvency proceedings, by reason of a corporate merger, or otherwise) by either party without the express written consent of the other party.
7.5 Addresses/Accounts.
Any notice, payments, or other communication shall be sufficiently given to a party when sent by:
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a.
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Certified mail or overnight courier to the address written above.
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b.
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Facsimile to Owner at______________ or to Licensee at___________________.
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c.
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Email to Owner at______________ or to Licensee at___________________.
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A party may change its address, facsimile number, or email address only by express written notice to the other party.
7.6 Taxes.
Licensee shall pay any tax and any related interest or penalty, however designated, imposed as a result of the existence or operation of this Agreement, including any tax which the Licensee is required to withhold or deduct from payments to Owner, except any income tax imposed upon Owner by the United States or any governmental entity within the United States.
Licensee shall furnish Owner with such evidence as may be required by United States taxing authorities to establish that any such tax has been paid.
7.7 Choice of Law.
Any dispute arising with respect to this Agreement shall be construed according to the law, exclusive of its conflict of law provisions, of the state in which the Owner is domiciled at the time the complaint is filed. If such state cannot be determined, the law of the Commonwealth of Pennsylvania, exclusive of conflict of law provisions, shall govern this Agreement.
7.8 Integration.
This Agreement sets forth the entire agreement and understanding between the parties as to the subject matter hereof and merges all prior discussions between them. Neither party shall be bound by any warranties, understandings or representations with respect to such subject matter other than as expressly provided herein or in a writing signed with or subsequent to execution hereof by an authorized representative of the party to be bound thereby.
7.9 Outside the United States
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a.
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There are countries in which the owner of an invention is entitled to compensation, damages or other monetary award for another's unlicensed manufacture, sale, lease, use or importation involving such invention prior to the date of issuance of a patent for such invention but on or after a certain earlier date, hereinafter referred to as the invention's “protection commencement date.” For the purposes of this agreement, an invention which has a protection commencement date in any such country shall be deemed to have had a patent issued therefor in such country on such date.
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b.
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There may be countries in which the Licensee may have, as a consequence of this Agreement, rights against an infringer of a Licensed Product. Licensee hereby waives any such right it may have by reason of any third party’s infringement or alleged infringement of Intellectual Property.
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c.
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Licensee agrees to register or cause to be registered, to the extent required by applicable law, and without expense to Owner, any agreements wherein sublicenses are granted by it under the Applications or Patents. Licensee waives any and all claims or defenses, arising by virtue of the absence of such registration, that might otherwise limit or affect its obligations to Owner.
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7.10 Counterparts.
This Agreement is executed in one or more counterparts as the parties deem desirable, each of which shall be deemed an original, but all of which shall constitute the same instrument. No action or suit shall require the production of all such copies.
7.11 Export Control Laws.
Licensee shall observe all applicable United States and foreign laws with respect to the transfer of Licensed Product(s), and related technical data, to foreign countries, including, without limitation, export administration regulations.
7.12 Licensee Able to Perform.
Licensee has had full disclosure and had opportunity to do due diligence to the extent it determined to be necessary and reasonable in regard to the Owner's Applications, Patent(s), Licensed Product(s), technology and business. Licensee acknowledges that Owner has made no representation other than is contained herein. Licensee represents that it is capable of researching, developing, obtaining regulatory approvals, and manufacturing the Licensed Products, and is aware of the difficulties inherent in the regulatory aspects, research, development, manufacturing, sale and distribution of the licensed products. Licensee acknowledges that Owner shall have no liability in regard to Licensee's success or failure of the anticipated sales or sublicense.
7.13 Confidentiality.
Except as otherwise agreed in writing or as required by government statute or court order, Licensee shall not appropriate, use or disclose, directly or indirectly, for its own benefit or otherwise, any information, materials, trade secrets, documents, correspondence, or other tangible or intangible property of Owner, to which it shall have obtained access hereunder or in contemplation of this Agreement, or which shall otherwise in any way relate to the Intellectual Property. Any of the aforesaid which is or comes into the possession of Licensee shall be held in trust for Owner and remain the sole and exclusive property of Owner, subject to the rights of License by Licensee as provided herein. The provisions of this Paragraph shall survive the termination of this Agreement.
7.14 No Joint Venture.
The parties acknowledge that nothing set forth in this Agreement nor the transactions contemplated herein shall constitute a joint venture, partnership, agency or any relationship other than Licensee as a licensee and Owner as a licensor of the Intellectual Property.
7.15 Unauthorized Use.
Licensee agrees to notify Owner immediately and in writing of all circumstances surrounding the unauthorized possession or use of the Intellectual Property by any entity including, but not limited to, an individual, governmental authority, corporation, limited liability company, partnership, or trust. Owner shall have the sole right and discretion to institute and prosecute a claim against any third party for infringement of Intellectual Property. This Agreement imposes no duty on Owner to file any claim.
7.16 Severability.
If any term or provision of this Agreement is held invalid or unenforceable by a court of competent jurisdiction, the remainder of the provisions shall continue in full force and effect as if this Agreement had been executed with the invalid or unenforceable portion thereof eliminated and the parties shall endeavor to replace such invalid or unenforceable portion with a similar but valid and enforceable provision.
7.17 Force Majeure.
No party shall be deemed to be in default of any provision of this Agreement, or for any failure in performance, resulting from acts or events beyond the reasonable control of such party, including acts of God, acts of civil or military authority, civil disturbance, war, strikes, natural catastrophes or other “force majeure” events.
7.18 Headings.
The headings of the paragraphs of this Agreement are inserted for convenience only and shall not constitute a part hereof.
IN WITNESS WHEREOF, each of the parties has caused this agreement to be executed in duplicate originals by its duly authorized representatives on the Effective Date written above.
Altman Enterprises LLC Premier Biomed, Inc.
Signature:
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/s/ Mitchell S. Felder
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Signature:
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/s/ William A. Hartman
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Name:
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Mitchell S. Felder, M.D.
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Name:
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William A. Hartman
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Title:
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Member
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Title:
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President/CEO
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APPENDIX
“Applications” means:
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a.
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PCT/US2009/064008, entitled Utilization of Stents for the Treatment of Blood Borne Carcinomas;
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b.
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PCT/US2010/027474, entitled Sequential Extracorporeal Treatment of Bodily Fluids;
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and
all applications of the United States and foreign countries that claim priority to the above PCT applications, including any non-provisionals, continuations, continuations-in-part, divisions, reissues, re-examinations or extensions thereof.
“Due Date” means a date set by the Owner that would permit it a reasonable time period to respond to an official action. The Due Date will be at least two (2) business days before any official due date exclusive of any permitted extensions of time.
“Effective Date” means the date indicated as the effective date at the top of page 1 of this Agreement.
“Fair Market Value” means, with respect to any Licensed Product sold, leased or put into use, the Selling Price actually obtained in an arm’s length transaction for a product comprising a Licensed Product in the form in which the product is sold, whether or not assembled and without excluding any components or subassemblies thereof which are included in such Selling Price. “Selling price" shall exclude:
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a.
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usual trade discounts actually allowed to unaffiliated persons or entities;
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c.
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costs of transportation and transportation insurance; and
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d.
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import, export, excise, sales and value added taxes, and custom duties.
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“Intellectual Property” means any and all Applications, Patents, copyrights and trade secrets, that are owned in whole or in part by Owner and arise from the Application or Patent.
“IP Cost” means any and all expenses arising from obtaining or maintaining Intellectual Property in the U.S. and foreign countries, including, but not limited to, government fees, attorneys’ fees, translation fees, maintenance fees, annuities, penalties, and interests.
“Lawsuit” means any action at law or equity, including, but not limited to, any and all claims for death, illness, personal injury, property damages, damages, expenses, losses, costs, and improper business practices, arising from or related to:
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a.
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the manufacture, use, license, sublicense, research, sale, offer for sale, other disposition of the Intellectual Property, or regulatory action involving the Intellectual Property;
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b.
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any challenge by a third party to the ownership or other rights of Owner in the Intellectual Property; or
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c.
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Owner or any Member being made a party or threatened to be made a party to, or otherwise involved (including involvement as a witness) in any action, suit or
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proceeding, whether civil, criminal, administrative or investigative (i) by reason of the fact that Owner, or any Member, is or was affiliated with the Intellectual Property, or (ii) by reason of the fact that a Member, employee, or agent of Owner is or was serving at the request of Licensee as a director, officer, employee, consultant, manager, representative, or agent of Licensee or other business entity or enterprise.
“Licensed Product” means any product that incorporates the Intellectual Property.
“Litigation Cost(s)” means any and all expenses, losses, and liabilities, arising from a Lawsuit, including, but not limited to, prosecution fees, attorneys’ fees, and expenses, loss of anticipated royalties or profits, any other business losses, litigation fees, fines, penalties, interests, travel expenses, court costs, expert witness fees, settlements, judgments, personal injuries, costs of collection,and government fees.
“Member(s)” means a member, an owner, or co-owner of Owner.
“Patents” means all patents (including utility models but excluding design patents and design registrations) issued in any country that (a) claim substantially the same subject matter as at least one Application and (b) claim priority to that Application.
“Related Companies” means (a) a subsidiary of the Licensee of which Licensee owns more than 80% of the subsidiary’s outstanding common stock, and (b) any other company so designated in a writing signed by Owner and the Licensee.
PREMIER BIOMEDICAL, INC.
THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (“THE ACT”), OR THE SECURITIES LAWS OF ANY STATE, AND MAY NOT BE OFFERED, SOLD, TRANSFERRED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO (i) AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT AND ANY APPLICABLE STATE LAWS, (ii) TO THE EXTENT APPLICABLE, RULE 144 UNDER THE ACT (OR ANY SIMILAR RULE UNDER THE ACT RELATING TO THE DISPOSITION OF SECURITIES), OR (iii) AN OPINION OF COUNSEL, IF SUCH OPINION SHALL BE REASONABLY SATISFACTORY TO COUNSEL TO THE ISSUER, THAT AN EXEMPTION FROM REGISTRATION UNDER THE ACT AND APPLICABLE STATE LAW IS AVAILABLE.
Premier Preferred No. 2
PREFERRED STOCK PURCHASE WARRANT
THIS IS TO CERTIFY that, for value received, Mitchell Felder, an individual, or its assigns (the “Holder”) is entitled, subject to the terms and conditions set forth herein, to purchase from Premier Biomedical, Inc., a Nevada corporation (the “Company”) up to One Million (1,000,000) fully paid and nonassessable shares of Series A Convertible Preferred Stock of the Company (the “Warrant Securities”) at the initial price of $0.001 per share but subject to adjustment as provided in Section 3 below, (the “Exercise Price”), upon payment by cashier’s check or wire transfer of the Exercise Price for such shares of the Preferred Stock to the Company at the Company’s offices.
1.
Exercisability
. This Warrant may be exercised in whole or in part at any time, or from time to time, between the date hereof and 5:00 p.m. Eastern Time on June 15, 2020, by presentation and surrender hereof to the Company of a notice of election to purchase duly executed and accompanied by payment by check or wire transfer of the Exercise Price.
2.
Manner of Exercise
. In case of the purchase of less than all the Warrant Securities, the Company shall cancel this Warrant upon the surrender hereof and shall execute and deliver a new warrant of like tenor for the balance of the Warrant Securities. Upon the exercise of this Warrant, the issuance of certificates for securities, properties or rights underlying this Warrant shall be made forthwith (and in any event within three (3) business days thereafter) without charge to the Holder including, without limitation, any tax that may be payable in respect of the issuance thereof: provided, however, that the Company shall not be required to pay any tax in respect of income or capital gain of the Holder.
If and to the extent this Warrant is exercised, in whole or in part, the Holder shall be entitled to receive a certificate or certificates representing the Warrant Securities so purchased, upon presentation and surrender to the Company of the form of election to purchase attached hereto duly executed, and accompanied by payment of the purchase price.
Premier Preferred No. 2
3.
Adjustment in Number of Shares
.
(A)
Adjustment for Reclassifications
. In case at any time or from time to time after the issue date the holders of the Preferred Stock of the Company (or any shares of stock or other securities at the time receivable upon the exercise of this Warrant) shall have received, or, on or after the record date fixed for the determination of eligible stockholders, shall have become entitled to receive, without payment therefore, other or additional stock or other securities or property (including cash) by way of stock split, spin-off, reclassification, combination of shares or similar corporate rearrangement (exclusive of any stock dividend of its or any subsidiary’s capital stock), then and in each such case the Holder of this Warrant, upon the exercise hereof as provided in Section 1, shall be entitled to receive the amount of stock and other securities and property which such Holder would hold on the date of such exercise if on the issue date he had been the holder of record of the number of shares of Preferred Stock of the Company called for on the face of this Warrant and had thereafter, during the period from the issue date, to and including the date of such exercise, retained such shares and/or all other or additional stock and other securities and property receivable by him as aforesaid during such period, giving effect to all adjustments called for during such period. In the event of any such adjustment, the Exercise Price shall be adjusted proportionally.
(B)
Adjustment for Reorganization, Consolidation, Merger
. In case of any reorganization of the Company (or any other corporation the stock or other securities of which are at the time receivable on the exercise of this Warrant) after the issue date, or in case, after such date, the Company (or any such other corporation) shall consolidate with or merge into another corporation or convey all or substantially all of its assets to another corporation, then and in each such case the Holder of this Warrant, upon the exercise hereof as provided in Section 1 at any time after the consummation of such reorganization, consolidation, merger or conveyance, shall be entitled to receive, in lieu of the stock or other securities or property to which such Holder would be entitled had the Holder exercised this Warrant immediately prior thereto, all subject to further adjustment as provided herein; in each such case, the terms of this Warrant shall be applicable to the shares of stock or other securities or property receivable upon the exercise of this Warrant after such consummation.
4.
No Requirement to Exercise
. Nothing contained in this Warrant shall be construed as requiring the Holder to exercise this Warrant prior to or in connection with the effectiveness of a registration statement.
5.
No Stockholder Rights
. Unless and until this Warrant is exercised, this Warrant shall not entitle the Holder hereof to any voting rights or other rights as a stockholder of the Company, or to any other rights whatsoever except the rights herein expressed, and, no dividends shall be payable or accrue in respect of this Warrant.
6.
Registration Rights
. The Company is under no obligation to include this Warrant or the Warrant Securities in a registration statement..
Premier Preferred No. 2
7.
Exchange
. This Warrant is exchangeable upon the surrender hereof by the Holder to the Company for new warrants of like tenor representing in the aggregate the right to purchase the number of Warrant Securities purchasable hereunder, each of such new warrants to represent the right to purchase such number of Warrant Securities as shall be designated by the Holder at the time of such surrender.
Upon receipt by the Company of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of this Warrant, and, in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it and reimbursement to the company of all reasonable expenses incidental thereto, and upon surrender and cancellation hereof, if mutilated, the Company will make and deliver a new warrant of like tenor and amount, in lieu hereof.
8.
Elimination of Fractional Interests
. The Company shall not be required to issue certificates representing fractions of securities upon the exercise of this Warrant, nor shall it be required to issue scrip or pay cash in lieu of fractional interests. All fractional interests shall be eliminated by rounding any fraction up to the nearest whole number of securities, properties or rights receivable upon exercise of this Warrant.
9.
Reservation of Securities
. The Company shall at all times reserve and keep available out of its authorized shares of Preferred Stock or other securities, solely for the purpose of issuance upon the exercise of this Warrant, such number of shares of Preferred Stock or other securities, properties or rights as shall be issuable upon the exercise hereof. The Company covenants and agrees that, upon exercise of this Warrant and payment of the Principal Value, all shares of Preferred Stock and other securities issuable upon such exercise shall be duly and validly issued, fully paid, non-assessable and not subject to the preemptive rights of any stockholder.
10.
Notices to Holder
. If at any time prior to the expiration of this Warrant or its exercise, any of the following events shall occur:
(a) the Company shall take a record of the holders of any class of its securities for the purpose of entitling them to receive a dividend or distribution payable otherwise than in cash, or a cash dividend or distribution payable otherwise than out of current or retained earnings, as indicated by the accounting treatment of such dividend or distribution on the books of the Company; or
(b) the Company shall offer to all the holders of a class of its securities any additional shares of capital stock of the Company or securities convertible into or exchangeable for shares of capital stock of the Company, or any option or warrant to subscribe therefor; or
Premier Preferred No. 2
(c) a dissolution, liquidation or winding up of the Company (other than in connection with a consolidation or merger) or a sale of all or substantially all of its property, assets and business as an entirety shall be proposed.
then, in any one or more said events, the Company shall give written notice of such event to the Holder at least fifteen (15) days prior to the date fixed as a record date or the date of closing the transfer books for the determination of the stockholder entitled to such dividend, distribution, convertible or exchangeable securities or subscription rights, or entitled to vote on such proposed dissolution, liquidation, winding up or sale. Such notice shall specify such record date or the date of closing the transfer books, as the case may be.
11.
Transferability
. This Warrant may be transferred or assigned by the Holder without notice or approval by the Company.
12.
Informational Requirements
. The Company will transmit to the Holder such information, documents and reports as are generally distributed to stockholders of the Company concurrently with the distribution thereof to such stockholders.
13.
Notice
. Notices to be given to the Company or the Holder shall be deemed to have been sufficiently given if delivered personally or sent by overnight courier or messenger, or by facsimile transmission. Notices shall be deemed to have been received on the date of personal delivery or facsimile transmission. The address of the Company and of the Holder shall be as set forth in the Company’s books and records.
14.
Consent to Jurisdiction and Service
. The Company consents to the jurisdiction of any court of the State of Florida, and of any federal court located in Florida, in any action or proceeding arising out of or in connection with this Warrant. The Company waives personal service of any summons, complaint or other process in connection with any such action or proceeding and agrees that service thereof may be made at the location provided in Section 13 hereof, or, in the alternative, in any other form or manner permitted by law. Pasco County, Florida shall be proper venue.
15.
Successors
. All the covenants and provisions of this Warrant shall be binding upon and inure to the benefit of the Company, the Holder and their respective legal representatives, successors and assigns.
16.
Attorneys Fees
. In the event the Investors or any holder hereof shall refer this Warrant to an attorney to enforce the terms hereof, the Company agrees to pay all the costs and expenses incurred in attempting or effecting collection hereunder, including reasonable attorney's fees, whether or not suit is instituted.
17.
Governing Law
. THIS WARRANT SHALL BE GOVERNED, CONSTRUED AND INTERPRETED UNDER THE LAWS OF THE STATE OF FLORIDA, WITHOUT GIVING EFFECT TO THE RULES GOVERNING CONFLICTS OF LAW.
Premier Preferred No. 2
IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by the signature of its President and to be delivered in Port Richey, Florida.
Dated: June 21, 2010
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Premier Biomedical, Inc.,
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a Nevada corporation
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/s/ William A. Hartman
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By:
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William A. Hartman
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Its:
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President
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Premier Preferred No. 2
[FORM OF ELECTION TO PURCHASE]
The undersigned, the holder of the attached Warrant, hereby irrevocably elects to exercise the purchase right represented by this Warrant Certificate for, and to purchase securities of Premier Biomedical, Inc. and herewith makes payment of $__________ therefor, and requests that the certificates for such securities be issued in the name of, and delivered to ___________________, whose address is ______________________________.
Dated: ____________________, 20___
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By:
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Its:
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(Signature must conform in all respects to name of holder as specified on the face of the Warrant Certificate)
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(Insert Social Security or Other
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Identifying Number of Holder)
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Premier Preferred No. 2
PREMIER BIOMEDICAL, INC.
THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (“THE ACT”), OR THE SECURITIES LAWS OF ANY STATE, AND MAY NOT BE OFFERED, SOLD, TRANSFERRED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO (i) AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT AND ANY APPLICABLE STATE LAWS, (ii) TO THE EXTENT APPLICABLE, RULE 144 UNDER THE ACT (OR ANY SIMILAR RULE UNDER THE ACT RELATING TO THE DISPOSITION OF SECURITIES), OR (iii) AN OPINION OF COUNSEL, IF SUCH OPINION SHALL BE REASONABLY SATISFACTORY TO COUNSEL TO THE ISSUER, THAT AN EXEMPTION FROM REGISTRATION UNDER THE ACT AND APPLICABLE STATE LAW IS AVAILABLE.
Premier Preferred No. 1
PREFERRED STOCK PURCHASE WARRANT
THIS IS TO CERTIFY that, for value received, William A. Hartman, an individual, or its assigns (the “Holder”) is entitled, subject to the terms and conditions set forth herein, to purchase from Premier Biomedical, Inc., a Nevada corporation (the “Company”) up to One Million (1,000,000) fully paid and nonassessable shares of Series A Convertible Preferred Stock of the Company (the “Warrant Securities”) at the initial price of $0.001 per share but subject to adjustment as provided in Section 3 below, (the “Exercise Price”), upon payment by cashier’s check or wire transfer of the Exercise Price for such shares of the Preferred Stock to the Company at the Company’s offices.
1.
Exercisability
. This Warrant may be exercised in whole or in part at any time, or from time to time, between the date hereof and 5:00 p.m. Eastern Time on June 15, 2020, by presentation and surrender hereof to the Company of a notice of election to purchase duly executed and accompanied by payment by check or wire transfer of the Exercise Price.
2.
Manner of Exercise
. In case of the purchase of less than all the Warrant Securities, the Company shall cancel this Warrant upon the surrender hereof and shall execute and deliver a new warrant of like tenor for the balance of the Warrant Securities. Upon the exercise of this Warrant, the issuance of certificates for securities, properties or rights underlying this Warrant shall be made forthwith (and in any event within three (3) business days thereafter) without charge to the Holder including, without limitation, any tax that may be payable in respect of the issuance thereof: provided, however, that the Company shall not be required to pay any tax in respect of income or capital gain of the Holder.
If and to the extent this Warrant is exercised, in whole or in part, the Holder shall be entitled to receive a certificate or certificates representing the Warrant Securities so purchased, upon presentation and surrender to the Company of the form of election to purchase attached hereto duly executed, and accompanied by payment of the purchase price.
Premier Preferred No. 1
3.
Adjustment in Number of Shares
.
(A)
Adjustment for Reclassifications
. In case at any time or from time to time after the issue date the holders of the Preferred Stock of the Company (or any shares of stock or other securities at the time receivable upon the exercise of this Warrant) shall have received, or, on or after the record date fixed for the determination of eligible stockholders, shall have become entitled to receive, without payment therefore, other or additional stock or other securities or property (including cash) by way of stock split, spin-off, reclassification, combination of shares or similar corporate rearrangement (exclusive of any stock dividend of its or any subsidiary’s capital stock), then and in each such case the Holder of this Warrant, upon the exercise hereof as provided in Section 1, shall be entitled to receive the amount of stock and other securities and property which such Holder would hold on the date of such exercise if on the issue date he had been the holder of record of the number of shares of Preferred Stock of the Company called for on the face of this Warrant and had thereafter, during the period from the issue date, to and including the date of such exercise, retained such shares and/or all other or additional stock and other securities and property receivable by him as aforesaid during such period, giving effect to all adjustments called for during such period. In the event of any such adjustment, the Exercise Price shall be adjusted proportionally.
(B)
Adjustment for Reorganization, Consolidation, Merger
. In case of any reorganization of the Company (or any other corporation the stock or other securities of which are at the time receivable on the exercise of this Warrant) after the issue date, or in case, after such date, the Company (or any such other corporation) shall consolidate with or merge into another corporation or convey all or substantially all of its assets to another corporation, then and in each such case the Holder of this Warrant, upon the exercise hereof as provided in Section 1 at any time after the consummation of such reorganization, consolidation, merger or conveyance, shall be entitled to receive, in lieu of the stock or other securities or property to which such Holder would be entitled had the Holder exercised this Warrant immediately prior thereto, all subject to further adjustment as provided herein; in each such case, the terms of this Warrant shall be applicable to the shares of stock or other securities or property receivable upon the exercise of this Warrant after such consummation.
4.
No Requirement to Exercise
. Nothing contained in this Warrant shall be construed as requiring the Holder to exercise this Warrant prior to or in connection with the effectiveness of a registration statement.
5.
No Stockholder Rights
. Unless and until this Warrant is exercised, this Warrant shall not entitle the Holder hereof to any voting rights or other rights as a stockholder of the Company, or to any other rights whatsoever except the rights herein expressed, and, no dividends shall be payable or accrue in respect of this Warrant.
6.
Registration Rights
. The Company is under no obligation to include this Warrant or the Warrant Securities in a registration statement..
Premier Preferred No. 1
7.
Exchange
. This Warrant is exchangeable upon the surrender hereof by the Holder to the Company for new warrants of like tenor representing in the aggregate the right to purchase the number of Warrant Securities purchasable hereunder, each of such new warrants to represent the right to purchase such number of Warrant Securities as shall be designated by the Holder at the time of such surrender.
Upon receipt by the Company of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of this Warrant, and, in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it and reimbursement to the company of all reasonable expenses incidental thereto, and upon surrender and cancellation hereof, if mutilated, the Company will make and deliver a new warrant of like tenor and amount, in lieu hereof.
8.
Elimination of Fractional Interests
. The Company shall not be required to issue certificates representing fractions of securities upon the exercise of this Warrant, nor shall it be required to issue scrip or pay cash in lieu of fractional interests. All fractional interests shall be eliminated by rounding any fraction up to the nearest whole number of securities, properties or rights receivable upon exercise of this Warrant.
9.
Reservation of Securities
. The Company shall at all times reserve and keep available out of its authorized shares of Preferred Stock or other securities, solely for the purpose of issuance upon the exercise of this Warrant, such number of shares of Preferred Stock or other securities, properties or rights as shall be issuable upon the exercise hereof. The Company covenants and agrees that, upon exercise of this Warrant and payment of the Principal Value, all shares of Preferred Stock and other securities issuable upon such exercise shall be duly and validly issued, fully paid, non-assessable and not subject to the preemptive rights of any stockholder.
10.
Notices to Holder
. If at any time prior to the expiration of this Warrant or its exercise, any of the following events shall occur:
(a) the Company shall take a record of the holders of any class of its securities for the purpose of entitling them to receive a dividend or distribution payable otherwise than in cash, or a cash dividend or distribution payable otherwise than out of current or retained earnings, as indicated by the accounting treatment of such dividend or distribution on the books of the Company; or
(b) the Company shall offer to all the holders of a class of its securities any additional shares of capital stock of the Company or securities convertible into or exchangeable for shares of capital stock of the Company, or any option or warrant to subscribe therefor; or
Premier Preferred No. 1
(c) a dissolution, liquidation or winding up of the Company (other than in connection with a consolidation or merger) or a sale of all or substantially all of its property, assets and business as an entirety shall be proposed.
then, in any one or more said events, the Company shall give written notice of such event to the Holder at least fifteen (15) days prior to the date fixed as a record date or the date of closing the transfer books for the determination of the stockholder entitled to such dividend, distribution, convertible or exchangeable securities or subscription rights, or entitled to vote on such proposed dissolution, liquidation, winding up or sale. Such notice shall specify such record date or the date of closing the transfer books, as the case may be.
11.
Transferability
. This Warrant may be transferred or assigned by the Holder without notice or approval by the Company.
12.
Informational Requirements
. The Company will transmit to the Holder such information, documents and reports as are generally distributed to stockholders of the Company concurrently with the distribution thereof to such stockholders.
13.
Notice
. Notices to be given to the Company or the Holder shall be deemed to have been sufficiently given if delivered personally or sent by overnight courier or messenger, or by facsimile transmission. Notices shall be deemed to have been received on the date of personal delivery or facsimile transmission. The address of the Company and of the Holder shall be as set forth in the Company’s books and records.
14.
Consent to Jurisdiction and Service
. The Company consents to the jurisdiction of any court of the State of Florida, and of any federal court located in Florida, in any action or proceeding arising out of or in connection with this Warrant. The Company waives personal service of any summons, complaint or other process in connection with any such action or proceeding and agrees that service thereof may be made at the location provided in Section 13 hereof, or, in the alternative, in any other form or manner permitted by law. Pasco County, Florida shall be proper venue.
15.
Successors
. All the covenants and provisions of this Warrant shall be binding upon and inure to the benefit of the Company, the Holder and their respective legal representatives, successors and assigns.
16.
Attorneys Fees
. In the event the Investors or any holder hereof shall refer this Warrant to an attorney to enforce the terms hereof, the Company agrees to pay all the costs and expenses incurred in attempting or effecting collection hereunder, including reasonable attorney's fees, whether or not suit is instituted.
17.
Governing Law
. THIS WARRANT SHALL BE GOVERNED, CONSTRUED AND INTERPRETED UNDER THE LAWS OF THE STATE OF FLORIDA, WITHOUT GIVING EFFECT TO THE RULES GOVERNING CONFLICTS OF LAW.
Premier Preferred No. 1
IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by the signature of its President and to be delivered in Port Richey, Florida.
Dated: June 21, 2010
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Premier Biomedical, Inc.,
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a Nevada corporation
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/s/ William A. Hartman
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By:
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William A. Hartman
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Its:
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President
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Premier Preferred No. 1
[FORM OF ELECTION TO PURCHASE]
The undersigned, the holder of the attached Warrant, hereby irrevocably elects to exercise the purchase right represented by this Warrant Certificate for, and to purchase securities of Premier Biomedical, Inc. and herewith makes payment of $__________ therefor, and requests that the certificates for such securities be issued in the name of, and delivered to ___________________, whose address is ______________________________.
Dated: ____________________, 20___
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By:
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Its:
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(Signature must conform in all respects to name of holder as specified on the face of the Warrant Certificate)
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(Insert Social Security or Other
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Identifying Number of Holder)
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Premier Preferred No. 1
PREMIER BIOMEDICAL, INC.
THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (“THE ACT”), OR THE SECURITIES LAWS OF ANY STATE, AND MAY NOT BE OFFERED, SOLD, TRANSFERRED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO (i) AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT AND ANY APPLICABLE STATE LAWS, (ii) TO THE EXTENT APPLICABLE, RULE 144 UNDER THE ACT (OR ANY SIMILAR RULE UNDER THE ACT RELATING TO THE DISPOSITION OF SECURITIES), OR (iii) AN OPINION OF COUNSEL, IF SUCH OPINION SHALL BE REASONABLY SATISFACTORY TO COUNSEL TO THE ISSUER, THAT AN EXEMPTION FROM REGISTRATION UNDER THE ACT AND APPLICABLE STATE LAW IS AVAILABLE.
Premier Common No. 2
COMMON STOCK PURCHASE WARRANT
THIS IS TO CERTIFY that, for value received, Mitchell Felder, an individual, or its assigns (the “Holder”) is entitled, subject to the terms and conditions set forth herein, to purchase from Premier Biomedical, Inc., a Nevada corporation (the “Company”) up to Seventeen Million (17,000,000) fully paid and nonassessable shares of common stock of the Company (the “Warrant Securities”) at the initial price of $0.00001 per share but subject to adjustment as provided in Section 3 below, (the “Exercise Price”), upon payment by cashier’s check or wire transfer of the Exercise Price for such shares of the Common Stock to the Company at the Company’s offices.
1.
Exercisability
. This Warrant may be exercised in whole or in part at any time, or from time to time, between the date hereof and 5:00 p.m. Eastern Time on June 15, 2020, by presentation and surrender hereof to the Company of a notice of election to purchase duly executed and accompanied by payment by check or wire transfer of the Exercise Price.
2.
Manner of Exercise
. In case of the purchase of less than all the Warrant Securities, the Company shall cancel this Warrant upon the surrender hereof and shall execute and deliver a new warrant of like tenor for the balance of the Warrant Securities. Upon the exercise of this Warrant, the issuance of certificates for securities, properties or rights underlying this Warrant shall be made forthwith (and in any event within three (3) business days thereafter) without charge to the Holder including, without limitation, any tax that may be payable in respect of the issuance thereof: provided, however, that the Company shall not be required to pay any tax in respect of income or capital gain of the Holder.
If and to the extent this Warrant is exercised, in whole or in part, the Holder shall be entitled to receive a certificate or certificates representing the Warrant Securities so purchased, upon presentation and surrender to the Company of the form of election to purchase attached hereto duly executed, and accompanied by payment of the purchase price.
Premier Common No. 2
3.
Adjustment in Number of Shares
.
(A)
Adjustment for Reclassifications
. In case at any time or from time to time after the issue date the holders of the Common Stock of the Company (or any shares of stock or other securities at the time receivable upon the exercise of this Warrant) shall have received, or, on or after the record date fixed for the determination of eligible stockholders, shall have become entitled to receive, without payment therefore, other or additional stock or other securities or property (including cash) by way of stock split, spin-off, reclassification, combination of shares or similar corporate rearrangement (exclusive of any stock dividend of its or any subsidiary’s capital stock), then and in each such case the Holder of this Warrant, upon the exercise hereof as provided in Section 1, shall be entitled to receive the amount of stock and other securities and property which such Holder would hold on the date of such exercise if on the issue date he had been the holder of record of the number of shares of Common Stock of the Company called for on the face of this Warrant and had thereafter, during the period from the issue date, to and including the date of such exercise, retained such shares and/or all other or additional stock and other securities and property receivable by him as aforesaid during such period, giving effect to all adjustments called for during such period. In the event of any such adjustment, the Exercise Price shall be adjusted proportionally.
(B)
Adjustment for Reorganization, Consolidation, Merger
. In case of any reorganization of the Company (or any other corporation the stock or other securities of which are at the time receivable on the exercise of this Warrant) after the issue date, or in case, after such date, the Company (or any such other corporation) shall consolidate with or merge into another corporation or convey all or substantially all of its assets to another corporation, then and in each such case the Holder of this Warrant, upon the exercise hereof as provided in Section 1 at any time after the consummation of such reorganization, consolidation, merger or conveyance, shall be entitled to receive, in lieu of the stock or other securities or property to which such Holder would be entitled had the Holder exercised this Warrant immediately prior thereto, all subject to further adjustment as provided herein; in each such case, the terms of this Warrant shall be applicable to the shares of stock or other securities or property receivable upon the exercise of this Warrant after such consummation.
4.
No Requirement to Exercise
. Nothing contained in this Warrant shall be construed as requiring the Holder to exercise this Warrant prior to or in connection with the effectiveness of a registration statement.
5.
No Stockholder Rights
. Unless and until this Warrant is exercised, this Warrant shall not entitle the Holder hereof to any voting rights or other rights as a stockholder of the Company, or to any other rights whatsoever except the rights herein expressed, and, no dividends shall be payable or accrue in respect of this Warrant.
6.
Registration Rights
. The Company is under no obligation to include this Warrant or the Warrant Securities in a registration statement..
Premier Common No. 2
7.
Exchange
. This Warrant is exchangeable upon the surrender hereof by the Holder to the Company for new warrants of like tenor representing in the aggregate the right to purchase the number of Warrant Securities purchasable hereunder, each of such new warrants to represent the right to purchase such number of Warrant Securities as shall be designated by the Holder at the time of such surrender.
Upon receipt by the Company of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of this Warrant, and, in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it and reimbursement to the company of all reasonable expenses incidental thereto, and upon surrender and cancellation hereof, if mutilated, the Company will make and deliver a new warrant of like tenor and amount, in lieu hereof.
8.
Elimination of Fractional Interests
. The Company shall not be required to issue certificates representing fractions of securities upon the exercise of this Warrant, nor shall it be required to issue scrip or pay cash in lieu of fractional interests. All fractional interests shall be eliminated by rounding any fraction up to the nearest whole number of securities, properties or rights receivable upon exercise of this Warrant.
9.
Reservation of Securities
. The Company shall at all times reserve and keep available out of its authorized shares of Common Stock or other securities, solely for the purpose of issuance upon the exercise of this Warrant, such number of shares of Common Stock or other securities, properties or rights as shall be issuable upon the exercise hereof. The Company covenants and agrees that, upon exercise of this Warrant and payment of the Principal Value, all shares of Common Stock and other securities issuable upon such exercise shall be duly and validly issued, fully paid, non-assessable and not subject to the preemptive rights of any stockholder.
10.
Notices to Holder
. If at any time prior to the expiration of this Warrant or its exercise, any of the following events shall occur:
(a) the Company shall take a record of the holders of any class of its securities for the purpose of entitling them to receive a dividend or distribution payable otherwise than in cash, or a cash dividend or distribution payable otherwise than out of current or retained earnings, as indicated by the accounting treatment of such dividend or distribution on the books of the Company; or
(b) the Company shall offer to all the holders of a class of its securities any additional shares of capital stock of the Company or securities convertible into or exchangeable for shares of capital stock of the Company, or any option or warrant to subscribe therefor; or
Premier Common No. 2
(c) a dissolution, liquidation or winding up of the Company (other than in connection with a consolidation or merger) or a sale of all or substantially all of its property, assets and business as an entirety shall be proposed.
then, in any one or more said events, the Company shall give written notice of such event to the Holder at least fifteen (15) days prior to the date fixed as a record date or the date of closing the transfer books for the determination of the stockholder entitled to such dividend, distribution, convertible or exchangeable securities or subscription rights, or entitled to vote on such proposed dissolution, liquidation, winding up or sale. Such notice shall specify such record date or the date of closing the transfer books, as the case may be.
11.
Transferability
. This Warrant may be transferred or assigned by the Holder without notice or approval by the Company.
12.
Informational Requirements
. The Company will transmit to the Holder such information, documents and reports as are generally distributed to stockholders of the Company concurrently with the distribution thereof to such stockholders.
13.
Notice
. Notices to be given to the Company or the Holder shall be deemed to have been sufficiently given if delivered personally or sent by overnight courier or messenger, or by facsimile transmission. Notices shall be deemed to have been received on the date of personal delivery or facsimile transmission. The address of the Company and of the Holder shall be as set forth in the Company’s books and records.
14.
Consent to Jurisdiction and Service
. The Company consents to the jurisdiction of any court of the State of Florida, and of any federal court located in Florida, in any action or proceeding arising out of or in connection with this Warrant. The Company waives personal service of any summons, complaint or other process in connection with any such action or proceeding and agrees that service thereof may be made at the location provided in Section 13 hereof, or, in the alternative, in any other form or manner permitted by law. Pasco County, Florida shall be proper venue.
15.
Successors
. All the covenants and provisions of this Warrant shall be binding upon and inure to the benefit of the Company, the Holder and their respective legal representatives, successors and assigns.
16.
Attorneys Fees
. In the event the Investors or any holder hereof shall refer this Warrant to an attorney to enforce the terms hereof, the Company agrees to pay all the costs and expenses incurred in attempting or effecting collection hereunder, including reasonable attorney's fees, whether or not suit is instituted.
17.
Governing Law
. THIS WARRANT SHALL BE GOVERNED, CONSTRUED AND INTERPRETED UNDER THE LAWS OF THE STATE OF FLORIDA, WITHOUT GIVING EFFECT TO THE RULES GOVERNING CONFLICTS OF LAW.
Premier Common No. 2
IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by the signature of its President and to be delivered in Port Richey, Florida.
Dated: June 21, 2010
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Premier Biomedical, Inc.,
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a Nevada corporation
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/s/ William A. Hartman
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By:
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William A. Hartman
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Its:
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President
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Premier Common No. 2
[FORM OF ELECTION TO PURCHASE]
The undersigned, the holder of the attached Warrant, hereby irrevocably elects to exercise the purchase right represented by this Warrant Certificate for, and to purchase securities of Premier Biomedical, Inc. and herewith makes payment of $__________ therefor, and requests that the certificates for such securities be issued in the name of, and delivered to ___________________, whose address is ______________________________.
Dated: ____________________, 20___
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By:
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Its:
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(Signature must conform in all respects to name of holder as specified on the face of the Warrant Certificate)
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(Insert Social Security or Other
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Identifying Number of Holder)
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Premier Common No. 2
PREMIER BIOMEDICAL, INC.
THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (“THE ACT”), OR THE SECURITIES LAWS OF ANY STATE, AND MAY NOT BE OFFERED, SOLD, TRANSFERRED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO (i) AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT AND ANY APPLICABLE STATE LAWS, (ii) TO THE EXTENT APPLICABLE, RULE 144 UNDER THE ACT (OR ANY SIMILAR RULE UNDER THE ACT RELATING TO THE DISPOSITION OF SECURITIES), OR (iii) AN OPINION OF COUNSEL, IF SUCH OPINION SHALL BE REASONABLY SATISFACTORY TO COUNSEL TO THE ISSUER, THAT AN EXEMPTION FROM REGISTRATION UNDER THE ACT AND APPLICABLE STATE LAW IS AVAILABLE.
Premier Common No. 1
COMMON STOCK PURCHASE WARRANT
THIS IS TO CERTIFY that, for value received, William A. Hartman, an individual, or its assigns (the “Holder”) is entitled, subject to the terms and conditions set forth herein, to purchase from Premier Biomedical, Inc., a Nevada corporation (the “Company”) up to Seventeen Million (17,000,000) fully paid and nonassessable shares of common stock of the Company (the “Warrant Securities”) at the initial price of $0.00001 per share but subject to adjustment as provided in Section 3 below, (the “Exercise Price”), upon payment by cashier’s check or wire transfer of the Exercise Price for such shares of the Common Stock to the Company at the Company’s offices.
1.
Exercisability
. This Warrant may be exercised in whole or in part at any time, or from time to time, between the date hereof and 5:00 p.m. Eastern Time on June 15, 2020, by presentation and surrender hereof to the Company of a notice of election to purchase duly executed and accompanied by payment by check or wire transfer of the Exercise Price.
2.
Manner of Exercise
. In case of the purchase of less than all the Warrant Securities, the Company shall cancel this Warrant upon the surrender hereof and shall execute and deliver a new warrant of like tenor for the balance of the Warrant Securities. Upon the exercise of this Warrant, the issuance of certificates for securities, properties or rights underlying this Warrant shall be made forthwith (and in any event within three (3) business days thereafter) without charge to the Holder including, without limitation, any tax that may be payable in respect of the issuance thereof: provided, however, that the Company shall not be required to pay any tax in respect of income or capital gain of the Holder.
If and to the extent this Warrant is exercised, in whole or in part, the Holder shall be entitled to receive a certificate or certificates representing the Warrant Securities so purchased, upon presentation and surrender to the Company of the form of election to purchase attached hereto duly executed, and accompanied by payment of the purchase price.
Premier Common No. 1
3.
Adjustment in Number of Shares
.
(A)
Adjustment for Reclassifications
. In case at any time or from time to time after the issue date the holders of the Common Stock of the Company (or any shares of stock or other securities at the time receivable upon the exercise of this Warrant) shall have received, or, on or after the record date fixed for the determination of eligible stockholders, shall have become entitled to receive, without payment therefore, other or additional stock or other securities or property (including cash) by way of stock split, spin-off, reclassification, combination of shares or similar corporate rearrangement (exclusive of any stock dividend of its or any subsidiary’s capital stock), then and in each such case the Holder of this Warrant, upon the exercise hereof as provided in Section 1, shall be entitled to receive the amount of stock and other securities and property which such Holder would hold on the date of such exercise if on the issue date he had been the holder of record of the number of shares of Common Stock of the Company called for on the face of this Warrant and had thereafter, during the period from the issue date, to and including the date of such exercise, retained such shares and/or all other or additional stock and other securities and property receivable by him as aforesaid during such period, giving effect to all adjustments called for during such period. In the event of any such adjustment, the Exercise Price shall be adjusted proportionally.
(B)
Adjustment for Reorganization, Consolidation, Merger
. In case of any reorganization of the Company (or any other corporation the stock or other securities of which are at the time receivable on the exercise of this Warrant) after the issue date, or in case, after such date, the Company (or any such other corporation) shall consolidate with or merge into another corporation or convey all or substantially all of its assets to another corporation, then and in each such case the Holder of this Warrant, upon the exercise hereof as provided in Section 1 at any time after the consummation of such reorganization, consolidation, merger or conveyance, shall be entitled to receive, in lieu of the stock or other securities or property to which such Holder would be entitled had the Holder exercised this Warrant immediately prior thereto, all subject to further adjustment as provided herein; in each such case, the terms of this Warrant shall be applicable to the shares of stock or other securities or property receivable upon the exercise of this Warrant after such consummation.
4.
No Requirement to Exercise
. Nothing contained in this Warrant shall be construed as requiring the Holder to exercise this Warrant prior to or in connection with the effectiveness of a registration statement.
5.
No Stockholder Rights
. Unless and until this Warrant is exercised, this Warrant shall not entitle the Holder hereof to any voting rights or other rights as a stockholder of the Company, or to any other rights whatsoever except the rights herein expressed, and, no dividends shall be payable or accrue in respect of this Warrant.
6.
Registration Rights
. The Company is under no obligation to include this Warrant or the Warrant Securities in a registration statement..
Premier Common No. 1
7.
Exchange
. This Warrant is exchangeable upon the surrender hereof by the Holder to the Company for new warrants of like tenor representing in the aggregate the right to purchase the number of Warrant Securities purchasable hereunder, each of such new warrants to represent the right to purchase such number of Warrant Securities as shall be designated by the Holder at the time of such surrender.
Upon receipt by the Company of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of this Warrant, and, in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it and reimbursement to the company of all reasonable expenses incidental thereto, and upon surrender and cancellation hereof, if mutilated, the Company will make and deliver a new warrant of like tenor and amount, in lieu hereof.
8.
Elimination of Fractional Interests
. The Company shall not be required to issue certificates representing fractions of securities upon the exercise of this Warrant, nor shall it be required to issue scrip or pay cash in lieu of fractional interests. All fractional interests shall be eliminated by rounding any fraction up to the nearest whole number of securities, properties or rights receivable upon exercise of this Warrant.
9.
Reservation of Securities
. The Company shall at all times reserve and keep available out of its authorized shares of Common Stock or other securities, solely for the purpose of issuance upon the exercise of this Warrant, such number of shares of Common Stock or other securities, properties or rights as shall be issuable upon the exercise hereof. The Company covenants and agrees that, upon exercise of this Warrant and payment of the Principal Value, all shares of Common Stock and other securities issuable upon such exercise shall be duly and validly issued, fully paid, non-assessable and not subject to the preemptive rights of any stockholder.
10.
Notices to Holder
. If at any time prior to the expiration of this Warrant or its exercise, any of the following events shall occur:
(a) the Company shall take a record of the holders of any class of its securities for the purpose of entitling them to receive a dividend or distribution payable otherwise than in cash, or a cash dividend or distribution payable otherwise than out of current or retained earnings, as indicated by the accounting treatment of such dividend or distribution on the books of the Company; or
(b) the Company shall offer to all the holders of a class of its securities any additional shares of capital stock of the Company or securities convertible into or exchangeable for shares of capital stock of the Company, or any option or warrant to subscribe therefor; or
Premier Common No. 1
(c) a dissolution, liquidation or winding up of the Company (other than in connection with a consolidation or merger) or a sale of all or substantially all of its property, assets and business as an entirety shall be proposed.
then, in any one or more said events, the Company shall give written notice of such event to the Holder at least fifteen (15) days prior to the date fixed as a record date or the date of closing the transfer books for the determination of the stockholder entitled to such dividend, distribution, convertible or exchangeable securities or subscription rights, or entitled to vote on such proposed dissolution, liquidation, winding up or sale. Such notice shall specify such record date or the date of closing the transfer books, as the case may be.
11.
Transferability
. This Warrant may be transferred or assigned by the Holder without notice or approval by the Company.
12.
Informational Requirements
. The Company will transmit to the Holder such information, documents and reports as are generally distributed to stockholders of the Company concurrently with the distribution thereof to such stockholders.
13.
Notice
. Notices to be given to the Company or the Holder shall be deemed to have been sufficiently given if delivered personally or sent by overnight courier or messenger, or by facsimile transmission. Notices shall be deemed to have been received on the date of personal delivery or facsimile transmission. The address of the Company and of the Holder shall be as set forth in the Company’s books and records.
14.
Consent to Jurisdiction and Service
. The Company consents to the jurisdiction of any court of the State of Florida, and of any federal court located in Florida, in any action or proceeding arising out of or in connection with this Warrant. The Company waives personal service of any summons, complaint or other process in connection with any such action or proceeding and agrees that service thereof may be made at the location provided in Section 13 hereof, or, in the alternative, in any other form or manner permitted by law. Pasco County, Florida shall be proper venue.
15.
Successors
. All the covenants and provisions of this Warrant shall be binding upon and inure to the benefit of the Company, the Holder and their respective legal representatives, successors and assigns.
16.
Attorneys Fees
. In the event the Investors or any holder hereof shall refer this Warrant to an attorney to enforce the terms hereof, the Company agrees to pay all the costs and expenses incurred in attempting or effecting collection hereunder, including reasonable attorney's fees, whether or not suit is instituted.
17.
Governing Law
. THIS WARRANT SHALL BE GOVERNED, CONSTRUED AND INTERPRETED UNDER THE LAWS OF THE STATE OF FLORIDA, WITHOUT GIVING EFFECT TO THE RULES GOVERNING CONFLICTS OF LAW.
Premier Common No. 1
IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by the signature of its President and to be delivered in Port Richey, Florida.
Dated: June 21, 2010
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Premier Biomedical, Inc.,
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a Nevada corporation
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/s/ William A. Hartman
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By:
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William A. Hartman
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Its:
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President
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Premier Common No. 1
[FORM OF ELECTION TO PURCHASE]
The undersigned, the holder of the attached Warrant, hereby irrevocably elects to exercise the purchase right represented by this Warrant Certificate for, and to purchase securities of Premier Biomedical, Inc. and herewith makes payment of $__________ therefor, and requests that the certificates for such securities be issued in the name of, and delivered to ___________________, whose address is ______________________________.
Dated: ____________________, 20___
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By:
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Its:
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(Signature must conform in all respects to name of holder as specified on the face of the Warrant Certificate)
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(Insert Social Security or Other
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Identifying Number of Holder)
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Premier Common No. 1
PREMIER BIOMEDICAL, INC.
THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (“THE ACT”), OR THE SECURITIES LAWS OF ANY STATE, AND MAY NOT BE OFFERED, SOLD, TRANSFERRED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO (i) AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT AND ANY APPLICABLE STATE LAWS, (ii) TO THE EXTENT APPLICABLE, RULE 144 UNDER THE ACT (OR ANY SIMILAR RULE UNDER THE ACT RELATING TO THE DISPOSITION OF SECURITIES), OR (iii) AN OPINION OF COUNSEL, IF SUCH OPINION SHALL BE REASONABLY SATISFACTORY TO COUNSEL TO THE ISSUER, THAT AN EXEMPTION FROM REGISTRATION UNDER THE ACT AND APPLICABLE STATE LAW IS AVAILABLE.
Premier Common No. 3
COMMON STOCK PURCHASE WARRANT
THIS IS TO CERTIFY that, for value received, The Lebrecht Group, APLC, a Utah corporation, or its assigns (the “Holder”) is entitled, subject to the terms and conditions set forth herein, to purchase from Premier Biomedical, Inc., a Nevada corporation (the “Company”) up to Two Million Five Hundred Thousand (2,500,000) fully paid and nonassessable shares of common stock of the Company (the “Warrant Securities”) at the initial price of $0.00001 per share but subject to adjustment as provided in Section 3 below, (the “Exercise Price”), upon payment by cashier’s check or wire transfer of the Exercise Price for such shares of the Common Stock to the Company at the Company’s offices.
1.
Exercisability
. This Warrant may be exercised in whole or in part at any time, or from time to time, between the date hereof and 5:00 p.m. Eastern Time on June 15, 2020, by presentation and surrender hereof to the Company of a notice of election to purchase duly executed and accompanied by payment by check or wire transfer of the Exercise Price.
2.
Manner of Exercise
. In case of the purchase of less than all the Warrant Securities, the Company shall cancel this Warrant upon the surrender hereof and shall execute and deliver a new warrant of like tenor for the balance of the Warrant Securities. Upon the exercise of this Warrant, the issuance of certificates for securities, properties or rights underlying this Warrant shall be made forthwith (and in any event within three (3) business days thereafter) without charge to the Holder including, without limitation, any tax that may be payable in respect of the issuance thereof: provided, however, that the Company shall not be required to pay any tax in respect of income or capital gain of the Holder.
If and to the extent this Warrant is exercised, in whole or in part, the Holder shall be entitled to receive a certificate or certificates representing the Warrant Securities so purchased, upon presentation and surrender to the Company of the form of election to purchase attached hereto duly executed, and accompanied by payment of the purchase price.
Premier Common No. 3
3.
Adjustment in Number of Shares
.
(A)
Adjustment for Reclassifications
. In case at any time or from time to time after the issue date the holders of the Common Stock of the Company (or any shares of stock or other securities at the time receivable upon the exercise of this Warrant) shall have received, or, on or after the record date fixed for the determination of eligible stockholders, shall have become entitled to receive, without payment therefore, other or additional stock or other securities or property (including cash) by way of stock split, spin-off, reclassification, combination of shares or similar corporate rearrangement (exclusive of any stock dividend of its or any subsidiary’s capital stock), then and in each such case the Holder of this Warrant, upon the exercise hereof as provided in Section 1, shall be entitled to receive the amount of stock and other securities and property which such Holder would hold on the date of such exercise if on the issue date he had been the holder of record of the number of shares of Common Stock of the Company called for on the face of this Warrant and had thereafter, during the period from the issue date, to and including the date of such exercise, retained such shares and/or all other or additional stock and other securities and property receivable by him as aforesaid during such period, giving effect to all adjustments called for during such period. In the event of any such adjustment, the Exercise Price shall be adjusted proportionally.
(B)
Adjustment for Reorganization, Consolidation, Merger
. In case of any reorganization of the Company (or any other corporation the stock or other securities of which are at the time receivable on the exercise of this Warrant) after the issue date, or in case, after such date, the Company (or any such other corporation) shall consolidate with or merge into another corporation or convey all or substantially all of its assets to another corporation, then and in each such case the Holder of this Warrant, upon the exercise hereof as provided in Section 1 at any time after the consummation of such reorganization, consolidation, merger or conveyance, shall be entitled to receive, in lieu of the stock or other securities or property to which such Holder would be entitled had the Holder exercised this Warrant immediately prior thereto, all subject to further adjustment as provided herein; in each such case, the terms of this Warrant shall be applicable to the shares of stock or other securities or property receivable upon the exercise of this Warrant after such consummation.
4.
No Requirement to Exercise
. Nothing contained in this Warrant shall be construed as requiring the Holder to exercise this Warrant prior to or in connection with the effectiveness of a registration statement.
5.
No Stockholder Rights
. Unless and until this Warrant is exercised, this Warrant shall not entitle the Holder hereof to any voting rights or other rights as a stockholder of the Company, or to any other rights whatsoever except the rights herein expressed, and, no dividends shall be payable or accrue in respect of this Warrant.
6.
Registration Rights
. The Company is under no obligation to include this Warrant or the Warrant Securities in a registration statement..
Premier Common No. 3
7.
Exchange
. This Warrant is exchangeable upon the surrender hereof by the Holder to the Company for new warrants of like tenor representing in the aggregate the right to purchase the number of Warrant Securities purchasable hereunder, each of such new warrants to represent the right to purchase such number of Warrant Securities as shall be designated by the Holder at the time of such surrender.
Upon receipt by the Company of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of this Warrant, and, in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it and reimbursement to the company of all reasonable expenses incidental thereto, and upon surrender and cancellation hereof, if mutilated, the Company will make and deliver a new warrant of like tenor and amount, in lieu hereof.
8.
Elimination of Fractional Interests
. The Company shall not be required to issue certificates representing fractions of securities upon the exercise of this Warrant, nor shall it be required to issue scrip or pay cash in lieu of fractional interests. All fractional interests shall be eliminated by rounding any fraction up to the nearest whole number of securities, properties or rights receivable upon exercise of this Warrant.
9.
Reservation of Securities
. The Company shall at all times reserve and keep available out of its authorized shares of Common Stock or other securities, solely for the purpose of issuance upon the exercise of this Warrant, such number of shares of Common Stock or other securities, properties or rights as shall be issuable upon the exercise hereof. The Company covenants and agrees that, upon exercise of this Warrant and payment of the Principal Value, all shares of Common Stock and other securities issuable upon such exercise shall be duly and validly issued, fully paid, non-assessable and not subject to the preemptive rights of any stockholder.
10.
Notices to Holder
. If at any time prior to the expiration of this Warrant or its exercise, any of the following events shall occur:
(a) the Company shall take a record of the holders of any class of its securities for the purpose of entitling them to receive a dividend or distribution payable otherwise than in cash, or a cash dividend or distribution payable otherwise than out of current or retained earnings, as indicated by the accounting treatment of such dividend or distribution on the books of the Company; or
(b) the Company shall offer to all the holders of a class of its securities any additional shares of capital stock of the Company or securities convertible into or exchangeable for shares of capital stock of the Company, or any option or warrant to subscribe therefor; or
Premier Common No. 3
(c) a dissolution, liquidation or winding up of the Company (other than in connection with a consolidation or merger) or a sale of all or substantially all of its property, assets and business as an entirety shall be proposed.
then, in any one or more said events, the Company shall give written notice of such event to the Holder at least fifteen (15) days prior to the date fixed as a record date or the date of closing the transfer books for the determination of the stockholder entitled to such dividend, distribution, convertible or exchangeable securities or subscription rights, or entitled to vote on such proposed dissolution, liquidation, winding up or sale. Such notice shall specify such record date or the date of closing the transfer books, as the case may be.
11.
Transferability
. This Warrant may be transferred or assigned by the Holder without notice or approval by the Company.
12.
Informational Requirements
. The Company will transmit to the Holder such information, documents and reports as are generally distributed to stockholders of the Company concurrently with the distribution thereof to such stockholders.
13.
Notice
. Notices to be given to the Company or the Holder shall be deemed to have been sufficiently given if delivered personally or sent by overnight courier or messenger, or by facsimile transmission. Notices shall be deemed to have been received on the date of personal delivery or facsimile transmission. The address of the Company and of the Holder shall be as set forth in the Company’s books and records.
14.
Consent to Jurisdiction and Service
. The Company consents to the jurisdiction of any court of the State of Florida, and of any federal court located in Florida, in any action or proceeding arising out of or in connection with this Warrant. The Company waives personal service of any summons, complaint or other process in connection with any such action or proceeding and agrees that service thereof may be made at the location provided in Section 13 hereof, or, in the alternative, in any other form or manner permitted by law. Pasco County, Florida shall be proper venue.
15.
Successors
. All the covenants and provisions of this Warrant shall be binding upon and inure to the benefit of the Company, the Holder and their respective legal representatives, successors and assigns.
16.
Attorneys Fees
. In the event the Investors or any holder hereof shall refer this Warrant to an attorney to enforce the terms hereof, the Company agrees to pay all the costs and expenses incurred in attempting or effecting collection hereunder, including reasonable attorney's fees, whether or not suit is instituted.
17.
Governing Law
. THIS WARRANT SHALL BE GOVERNED, CONSTRUED AND INTERPRETED UNDER THE LAWS OF THE STATE OF FLORIDA, WITHOUT GIVING EFFECT TO THE RULES GOVERNING CONFLICTS OF LAW.
Premier Common No. 3
IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by the signature of its President and to be delivered in Port Richey, Florida.
Dated: June 21, 2010
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Premier Biomedical, Inc.,
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a Nevada corporation
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/s/ William A. Hartman
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By:
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William A. Hartman
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Its:
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President
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Premier Common No. 3
[FORM OF ELECTION TO PURCHASE]
The undersigned, the holder of the attached Warrant, hereby irrevocably elects to exercise the purchase right represented by this Warrant Certificate for, and to purchase securities of Premier Biomedical, Inc. and herewith makes payment of $__________ therefor, and requests that the certificates for such securities be issued in the name of, and delivered to ___________________, whose address is ______________________________.
Dated: ____________________, 20___
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By:
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Its:
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(Signature must conform in all respects to name of holder as specified on the face of the Warrant Certificate)
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(Insert Social Security or Other
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Identifying Number of Holder)
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Premier Common No. 3
PROMISSORY NOTE
$1,177.50
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December 31, 2010
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FOR VALUE RECEIVED,
Premier Biomedical, Inc
, (the "
Maker
"), with its primary offices located at
10805 Fallen Leaf Lane, Port Richey FL 34668
, promises to pay to the order of
William Harman at PO Box 25, Jackson Center, PA 16133
(the "
Payee
"), upon the terms set forth below, the principal sum of
One Thousand One Hundred Seventy Seven and one half dollars
($1,177.50)
(“Principal Sum”) together with interest at an annual rate of
8%
on the unpaid Principal Sum outstanding (“Principal and Interest Sum”) (this un-secured promissory note, the “
Note
”).
1.
Principal
Maker shall be required to pay the Payee an amount in cash, wire transfer or check equal to the Principal and Interest Sum on Demand.
(a) "
Event of Default
", wherever used herein, means any one of the following events (whatever the reason and whether it shall be voluntary or involuntary or effected by operation of law or pursuant to any judgment, decree or order of any court, or any order, rule or regulation of any administrative or governmental body):
(i) any default in the payment of the principal or interest of this Note, as and when the same shall become due and payable;
(ii) Maker shall fail to observe or perform any obligation or shall breach any term or provision of this Note;
(iii) Maker shall commence, or there shall be commenced against Maker, a case under any applicable bankruptcy or insolvency laws as now or hereafter in effect or any successor thereto, or Maker commences any other proceeding under any reorganization, arrangement, adjustment of debt, relief of debtors, dissolution, insolvency or liquidation or similar law of any jurisdiction whether now or hereafter in effect relating to Maker, or there is commenced against Maker, any such bankruptcy, insolvency or other proceeding which remains undismissed for a period of 60 days; or Maker is adjudicated insolvent or bankrupt; or any order of relief or other order approving any such case or proceeding is entered; or Maker suffers any appointment of any custodian or the like for it or any substantial part of its property which continues undischarged or unstayed for a period of 60 days; or Maker, makes a general assignment for the benefit of creditors; or Maker, shall fail to pay, or shall state that it is unable to pay, or shall be unable to pay, its debts generally as they become due; or Maker shall call a meeting of its creditors with a view to arranging a composition, adjustment or restructuring of its debts; or Maker shall by any act or failure to act expressly indicate its consent to, approval of or acquiescence in any of the foregoing; or any corporate or other action is taken by Maker for the purpose of effecting any of the foregoing; or
(b) If any Event of Default occurs, the full principal amount of this Note, shall become, at the Payee's election, immediately due and payable in cash, with interest accruing at 1.5% per month on any unpaid obligation. The Payee need not provide and Maker hereby waives any presentment, demand, protest or other notice of any kind, and the Payee may immediately and without expiration of any grace period enforce any and all of its rights and remedies hereunder and all other remedies available to it under applicable law. Such declaration may be rescinded and annulled by Payee at any time prior to payment hereunder. No such rescission or annulment shall affect any subsequent Event of Default or impair any right consequent thereon.
3.
No Waiver of Payee's Rights
. All payments of principal shall be made without setoff, deduction or counterclaim. No delay or failure on the part of the Payee in exercising any of its options, powers or rights, nor any partial or single exercise of its options, powers or rights shall constitute a waiver thereof or of any other option, power or right, and no waiver on the part of the Payee of any of its options, powers or rights shall constitute a waiver of any other option, power or right. Maker hereby waives presentment of payment, protest, and all notices or demands in connection with the delivery, acceptance, performance, default or endorsement of this Note. Acceptance by the Payee of less than the full amount due and payable hereunder shall in no way limit the right of the Payee to require full payment of all sums due and payable hereunder in accordance with the terms hereof.
4.
Modifications
. No term or provision contained herein may be modified, amended or waived except by written agreement or consent signed by the party to be bound thereby.
5.
Cumulative Rights and Remedies; Usury
. The rights and remedies of Payee expressed herein are cumulative and not exclusive of any rights and remedies otherwise available under this Note, the Security Agreement, the Guarantee or applicable law (including at equity). The election of Payee to avail itself of any one or more remedies shall not be a bar to any other available remedies, which Maker agrees Payee may take from time to time. If it shall be found that any interest due hereunder arising from an Event of Default shall violate applicable laws governing usury, the applicable rate of interest due hereunder shall be reduced to the maximum permitted rate of interest under such law.
6.
Collection Expenses
. If Payee shall commence an action or proceeding to enforce this Note, then Maker shall reimburse Payee for its costs of collection and reasonable attorney fees incurred with the investigation, preparation and prosecution of such action or proceeding.
7.
Severability
. If any provision of this Note is declared by a court of competent jurisdiction to be in any way invalid, illegal or unenforceable, the balance of this Note shall remain in effect, and if any provision is inapplicable to any person or circumstance, it shall nevertheless remain applicable to all other persons and circumstances.
8.
Successors and Assigns
. This Note shall be binding upon Maker and its successors and shall inure to the benefit of the Payee and its successors and assigns. The term "Payee" as used herein, shall also include any endorsee, assignee or other holder of this Note.
9.
Lost or Stolen Promissory Note
. If this Note is lost, stolen, mutilated or otherwise destroyed, Maker shall execute and deliver to the Payee a new promissory note containing the same terms, and in the same form, as this Note. In such event, Maker may require the Payee to deliver to Maker an affidavit of lost instrument and customary indemnity in respect thereof as a condition to the delivery of any such new promissory note. Any costs incurred pursuant to this paragraph shall be the responsibility of the Payee.
10.
Due Authorization
. This Note has been duly authorized, executed and delivered by Maker and is the legal obligation of Maker, enforceable against Maker in accordance with its terms. The shares of the Maker’s common stock if issued to Payee, when issued will be validly issued, fully paid and non-assessable.
11.
Governing Law
. All questions concerning the construction, validity, enforcement and interpretation of this Note shall be governed by and construed and enforced in accordance with the internal laws of the State of California, without regard to the principles of conflicts of law thereof. Each of Maker and Payee agree that all legal proceedings concerning the interpretations, enforcement and defense of this Note shall be commenced in the Courts of the State of California, the courts of the United States of America for the State of California, and appellate courts from any thereof (the "California
Courts
"). Each of Maker and Payee hereby irrevocably submit to the exclusive jurisdiction of the California Courts for the adjudication of any dispute hereunder (including with respect to the enforcement of this Note), and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is improper. Each of Maker and Payee hereby irrevocably waive personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to the other at the address in effect for notices to it under this Note and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. Each of Maker and Payee hereby irrevocably waive, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Note or the transactions contemplated hereby.
Maker may prepay this Note in whole or in part at any time, and from time to time, without being required to pay any penalty or premium for such privilege. The undersigned signs this Note as a maker and not as a surety or guarantor or in any other capacity.
Dated:
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Payee Accepted By:
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/s/ William Hartman
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William Hartman
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PO Box 25, Jackson Center, PA 16133
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Dated:
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Maker By:
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/s/ William Hartman
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William Hartman as CEO of
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Premier Biomedical, Inc.
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Wiring Instructions for delivery of funds:
PROMISSORY NOTE
$1,177.50
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December 31, 2010
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FOR VALUE RECEIVED,
Premier Biomedical, Inc
, (the "
Maker
"), with its primary offices located at
10805 Fallen Leaf Lane, Port Richey FL 34668
, promises to pay to the order of
Mitchell Felder at 3694 McConnell Rd, PA 16148
(the "
Payee
"), upon the terms set forth below, the principal sum of
One Thousand One Hundred Seventy Seven and one half dollars
($1,177.50)
(“Principal Sum”) together with interest at an annual rate of
8%
on the unpaid Principal Sum outstanding (“Principal and Interest Sum”) (this un-secured promissory note, the “
Note
”).
1.
Principal
Maker shall be required to pay the Payee an amount in cash, wire transfer or check equal to the Principal and Interest Sum on Demand.
(a) "
Event of Default
", wherever used herein, means any one of the following events (whatever the reason and whether it shall be voluntary or involuntary or effected by operation of law or pursuant to any judgment, decree or order of any court, or any order, rule or regulation of any administrative or governmental body):
(i) any default in the payment of the principal or interest of this Note, as and when the same shall become due and payable;
(ii) Maker shall fail to observe or perform any obligation or shall breach any term or provision of this Note;
(iii) Maker shall commence, or there shall be commenced against Maker, a case under any applicable bankruptcy or insolvency laws as now or hereafter in effect or any successor thereto, or Maker commences any other proceeding under any reorganization, arrangement, adjustment of debt, relief of debtors, dissolution, insolvency or liquidation or similar law of any jurisdiction whether now or hereafter in effect relating to Maker, or there is commenced against Maker, any such bankruptcy, insolvency or other proceeding which remains undismissed for a period of 60 days; or Maker is adjudicated insolvent or bankrupt; or any order of relief or other order approving any such case or proceeding is entered; or Maker suffers any appointment of any custodian or the like for it or any substantial part of its property which continues undischarged or unstayed for a period of 60 days; or Maker, makes a general assignment for the benefit of creditors; or Maker, shall fail to pay, or shall state that it is unable to pay, or shall be unable to pay, its debts generally as they become due; or Maker shall call a meeting of its creditors with a view to arranging a composition, adjustment or restructuring of its debts; or Maker shall by any act or failure to act expressly indicate its consent to, approval of or acquiescence in any of the foregoing; or any corporate or other action is taken by Maker for the purpose of effecting any of the foregoing; or
(b) If any Event of Default occurs, the full principal amount of this Note, shall become, at the Payee's election, immediately due and payable in cash, with interest accruing at 1.5% per month on any unpaid obligation. The Payee need not provide and Maker hereby waives any presentment, demand, protest or other notice of any kind, and the Payee may immediately and without expiration of any grace period enforce any and all of its rights and remedies hereunder and all other remedies available to it under applicable law. Such declaration may be rescinded and annulled by Payee at any time prior to payment hereunder. No such rescission or annulment shall affect any subsequent Event of Default or impair any right consequent thereon.
3.
No Waiver of Payee's Rights
. All payments of principal shall be made without setoff, deduction or counterclaim. No delay or failure on the part of the Payee in exercising any of its options, powers or rights, nor any partial or single exercise of its options, powers or rights shall constitute a waiver thereof or of any other option, power or right, and no waiver on the part of the Payee of any of its options, powers or rights shall constitute a waiver of any other option, power or right. Maker hereby waives presentment of payment, protest, and all notices or demands in connection with the delivery, acceptance, performance, default or endorsement of this Note. Acceptance by the Payee of less than the full amount due and payable hereunder shall in no way limit the right of the Payee to require full payment of all sums due and payable hereunder in accordance with the terms hereof.
4.
Modifications
. No term or provision contained herein may be modified, amended or waived except by written agreement or consent signed by the party to be bound thereby.
5.
Cumulative Rights and Remedies; Usury
. The rights and remedies of Payee expressed herein are cumulative and not exclusive of any rights and remedies otherwise available under this Note, the Security Agreement, the Guarantee or applicable law (including at equity). The election of Payee to avail itself of any one or more remedies shall not be a bar to any other available remedies, which Maker agrees Payee may take from time to time. If it shall be found that any interest due hereunder arising from an Event of Default shall violate applicable laws governing usury, the applicable rate of interest due hereunder shall be reduced to the maximum permitted rate of interest under such law.
6.
Collection Expenses
. If Payee shall commence an action or proceeding to enforce this Note, then Maker shall reimburse Payee for its costs of collection and reasonable attorney fees incurred with the investigation, preparation and prosecution of such action or proceeding.
7.
Severability
. If any provision of this Note is declared by a court of competent jurisdiction to be in any way invalid, illegal or unenforceable, the balance of this Note shall remain in effect, and if any provision is inapplicable to any person or circumstance, it shall nevertheless remain applicable to all other persons and circumstances.
8.
Successors and Assigns
. This Note shall be binding upon Maker and its successors and shall inure to the benefit of the Payee and its successors and assigns. The term "Payee" as used herein, shall also include any endorsee, assignee or other holder of this Note.
9.
Lost or Stolen Promissory Note
. If this Note is lost, stolen, mutilated or otherwise destroyed, Maker shall execute and deliver to the Payee a new promissory note containing the same terms, and in the same form, as this Note. In such event, Maker may require the Payee to deliver to Maker an affidavit of lost instrument and customary indemnity in respect thereof as a condition to the delivery of any such new promissory note. Any costs incurred pursuant to this paragraph shall be the responsibility of the Payee.
10.
Due Authorization
. This Note has been duly authorized, executed and delivered by Maker and is the legal obligation of Maker, enforceable against Maker in accordance with its terms. The shares of the Maker’s common stock if issued to Payee, when issued will be validly issued, fully paid and non-assessable.
11.
Governing Law
. All questions concerning the construction, validity, enforcement and interpretation of this Note shall be governed by and construed and enforced in accordance with the internal laws of the State of California, without regard to the principles of conflicts of law thereof. Each of Maker and Payee agree that all legal proceedings concerning the interpretations, enforcement and defense of this Note shall be commenced in the Courts of the State of California, the courts of the United States of America for the State of California, and appellate courts from any thereof (the "California
Courts
"). Each of Maker and Payee hereby irrevocably submit to the exclusive jurisdiction of the California Courts for the adjudication of any dispute hereunder (including with respect to the enforcement of this Note), and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is improper. Each of Maker and Payee hereby irrevocably waive personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to the other at the address in effect for notices to it under this Note and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. Each of Maker and Payee hereby irrevocably waive, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Note or the transactions contemplated hereby.
Maker may prepay this Note in whole or in part at any time, and from time to time, without being required to pay any penalty or premium for such privilege. The undersigned signs this Note as a maker and not as a surety or guarantor or in any other capacity.
Dated:
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Payee Accepted By:
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/s/ Mitchell Felder
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Mitchell Felder
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3694 McConnell Hermitage PA 16148
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Dated:
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Maker By:
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/s/ William Hartman
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William Hartman as CEO of
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Premier Biomedical, Inc.
|
Wiring Instructions for delivery of funds:
PROMISSORY NOTE
FOR VALUE RECEIVED,
Premier Biomedical, Inc
, (the "
Maker
"), with its primary offices located at
10805 Fallen Leaf Lane, Port Richey FL 34668
, promises to pay to the order of
William Harman at PO Box 25, Jackson Center, PA 16133
(the "
Payee
"), upon the terms set forth below, the principal sum of
Five Hundred Seventy Dollars
($500.00)
(“Principal Sum”) together with interest at an annual rate of
8%
on the unpaid Principal Sum outstanding (“Principal and Interest Sum”) (this un-secured promissory note, the “
Note
”).
1.
Principal
Maker shall be required to pay the Payee an amount in cash, wire transfer or check equal to the Principal and Interest Sum on Demand.
(a) "
Event of Default
", wherever used herein, means any one of the following events (whatever the reason and whether it shall be voluntary or involuntary or effected by operation of law or pursuant to any judgment, decree or order of any court, or any order, rule or regulation of any administrative or governmental body):
(i) any default in the payment of the principal or interest of this Note, as and when the same shall become due and payable;
(ii) Maker shall fail to observe or perform any obligation or shall breach any term or provision of this Note;
(iii) Maker shall commence, or there shall be commenced against Maker, a case under any applicable bankruptcy or insolvency laws as now or hereafter in effect or any successor thereto, or Maker commences any other proceeding under any reorganization, arrangement, adjustment of debt, relief of debtors, dissolution, insolvency or liquidation or similar law of any jurisdiction whether now or hereafter in effect relating to Maker, or there is commenced against Maker, any such bankruptcy, insolvency or other proceeding which remains undismissed for a period of 60 days; or Maker is adjudicated insolvent or bankrupt; or any order of relief or other order approving any such case or proceeding is entered; or Maker suffers any appointment of any custodian or the like for it or any substantial part of its property which continues undischarged or unstayed for a period of 60 days; or Maker, makes a general assignment for the benefit of creditors; or Maker, shall fail to pay, or shall state that it is unable to pay, or shall be unable to pay, its debts generally as they become due; or Maker shall call a meeting of its creditors with a view to arranging a composition, adjustment or restructuring of its debts; or Maker shall by any act or failure to act expressly indicate its consent to, approval of or acquiescence in any of the foregoing; or any corporate or other action is taken by Maker for the purpose of effecting any of the foregoing; or
(b) If any Event of Default occurs, the full principal amount of this Note, shall become, at the Payee's election, immediately due and payable in cash, with interest accruing at 1.5% per month on any unpaid obligation. The Payee need not provide and Maker hereby waives any presentment, demand, protest or other notice of any kind, and the Payee may immediately and without expiration of any grace period enforce any and all of its rights and remedies hereunder and all other remedies available to it under applicable law. Such declaration may be rescinded and annulled by Payee at any time prior to payment hereunder. No such rescission or annulment shall affect any subsequent Event of Default or impair any right consequent thereon.
3.
No Waiver of Payee's Rights
. All payments of principal shall be made without setoff, deduction or counterclaim. No delay or failure on the part of the Payee in exercising any of its options, powers or rights, nor any partial or single exercise of its options, powers or rights shall constitute a waiver thereof or of any other option, power or right, and no waiver on the part of the Payee of any of its options, powers or rights shall constitute a waiver of any other option, power or right. Maker hereby waives presentment of payment, protest, and all notices or demands in connection with the delivery, acceptance, performance, default or endorsement of this Note. Acceptance by the Payee of less than the full amount due and payable hereunder shall in no way limit the right of the Payee to require full payment of all sums due and payable hereunder in accordance with the terms hereof.
4.
Modifications
. No term or provision contained herein may be modified, amended or waived except by written agreement or consent signed by the party to be bound thereby.
5.
Cumulative Rights and Remedies; Usury
. The rights and remedies of Payee expressed herein are cumulative and not exclusive of any rights and remedies otherwise available under this Note, the Security Agreement, the Guarantee or applicable law (including at equity). The election of Payee to avail itself of any one or more remedies shall not be a bar to any other available remedies, which Maker agrees Payee may take from time to time. If it shall be found that any interest due hereunder arising from an Event of Default shall violate applicable laws governing usury, the applicable rate of interest due hereunder shall be reduced to the maximum permitted rate of interest under such law.
6.
Collection Expenses
. If Payee shall commence an action or proceeding to enforce this Note, then Maker shall reimburse Payee for its costs of collection and reasonable attorney fees incurred with the investigation, preparation and prosecution of such action or proceeding.
7.
Severability
. If any provision of this Note is declared by a court of competent jurisdiction to be in any way invalid, illegal or unenforceable, the balance of this Note shall remain in effect, and if any provision is inapplicable to any person or circumstance, it shall nevertheless remain applicable to all other persons and circumstances.
8.
Successors and Assigns
. This Note shall be binding upon Maker and its successors and shall inure to the benefit of the Payee and its successors and assigns. The term "Payee" as used herein, shall also include any endorsee, assignee or other holder of this Note.
9.
Lost or Stolen Promissory Note
. If this Note is lost, stolen, mutilated or otherwise destroyed, Maker shall execute and deliver to the Payee a new promissory note containing the same terms, and in the same form, as this Note. In such event, Maker may require the Payee to deliver to Maker an affidavit of lost instrument and customary indemnity in respect thereof as a condition to the delivery of any such new promissory note. Any costs incurred pursuant to this paragraph shall be the responsibility of the Payee.
10.
Due Authorization
. This Note has been duly authorized, executed and delivered by Maker and is the legal obligation of Maker, enforceable against Maker in accordance with its terms. The shares of the Maker’s common stock if issued to Payee, when issued will be validly issued, fully paid and non-assessable.
11.
Governing Law
. All questions concerning the construction, validity, enforcement and interpretation of this Note shall be governed by and construed and enforced in accordance with the internal laws of the State of California, without regard to the principles of conflicts of law thereof. Each of Maker and Payee agree that all legal proceedings concerning the interpretations, enforcement and defense of this Note shall be commenced in the Courts of the State of California, the courts of the United States of America for the State of California, and appellate courts from any thereof (the "California
Courts
"). Each of Maker and Payee hereby irrevocably submit to the exclusive jurisdiction of the California Courts for the adjudication of any dispute hereunder (including with respect to the enforcement of this Note), and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is improper. Each of Maker and Payee hereby irrevocably waive personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to the other at the address in effect for notices to it under this Note and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. Each of Maker and Payee hereby irrevocably waive, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Note or the transactions contemplated hereby.
Maker may prepay this Note in whole or in part at any time, and from time to time, without being required to pay any penalty or premium for such privilege. The undersigned signs this Note as a maker and not as a surety or guarantor or in any other capacity.
Dated:
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Payee Accepted By:
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/s/ William Hartman
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William Hartman
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PO Box 25, Jackson Center, PA 16133
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Dated:
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Maker By:
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/s/ William Hartman
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William Hartman as CEO of
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Premier Biomedical, Inc.
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Wiring Instructions for delivery of funds:
PROMISSORY NOTE
FOR VALUE RECEIVED,
Premier Biomedical, Inc
, (the "
Maker
"), with its primary offices located at
10805 Fallen Leaf Lane, Port Richey FL 34668
, promises to pay to the order of
Mitchell Felder at 3694 McConnell Rd, PA 16148
(the "
Payee
"), upon the terms set forth below, the principal sum of
Five Hundred Dollars
($500.00)
(“Principal Sum”) together with interest at an annual rate of
8%
on the unpaid Principal Sum outstanding (“Principal and Interest Sum”) (this un-secured promissory note, the “
Note
”).
1.
Principal
Maker shall be required to pay the Payee an amount in cash, wire transfer or check equal to the Principal and Interest Sum on Demand.
(a) "
Event of Default
", wherever used herein, means any one of the following events (whatever the reason and whether it shall be voluntary or involuntary or effected by operation of law or pursuant to any judgment, decree or order of any court, or any order, rule or regulation of any administrative or governmental body):
(i) any default in the payment of the principal or interest of this Note, as and when the same shall become due and payable;
(ii) Maker shall fail to observe or perform any obligation or shall breach any term or provision of this Note;
(iii) Maker shall commence, or there shall be commenced against Maker, a case under any applicable bankruptcy or insolvency laws as now or hereafter in effect or any successor thereto, or Maker commences any other proceeding under any reorganization, arrangement, adjustment of debt, relief of debtors, dissolution, insolvency or liquidation or similar law of any jurisdiction whether now or hereafter in effect relating to Maker, or there is commenced against Maker, any such bankruptcy, insolvency or other proceeding which remains undismissed for a period of 60 days; or Maker is adjudicated insolvent or bankrupt; or any order of relief or other order approving any such case or proceeding is entered; or Maker suffers any appointment of any custodian or the like for it or any substantial part of its property which continues undischarged or unstayed for a period of 60 days; or Maker, makes a general assignment for the benefit of creditors; or Maker, shall fail to pay, or shall state that it is unable to pay, or shall be unable to pay, its debts generally as they become due; or Maker shall call a meeting of its creditors with a view to arranging a composition, adjustment or restructuring of its debts; or Maker shall by any act or failure to act expressly indicate its consent to, approval of or acquiescence in any of the foregoing; or any corporate or other action is taken by Maker for the purpose of effecting any of the foregoing; or
(b) If any Event of Default occurs, the full principal amount of this Note, shall become, at the Payee's election, immediately due and payable in cash, with interest accruing at 1.5% per month on any unpaid obligation. The Payee need not provide and Maker hereby waives any presentment, demand, protest or other notice of any kind, and the Payee may immediately and without expiration of any grace period enforce any and all of its rights and remedies hereunder and all other remedies available to it under applicable law. Such declaration may be rescinded and annulled by Payee at any time prior to payment hereunder. No such rescission or annulment shall affect any subsequent Event of Default or impair any right consequent thereon.
3.
No Waiver of Payee's Rights
. All payments of principal shall be made without setoff, deduction or counterclaim. No delay or failure on the part of the Payee in exercising any of its options, powers or rights, nor any partial or single exercise of its options, powers or rights shall constitute a waiver thereof or of any other option, power or right, and no waiver on the part of the Payee of any of its options, powers or rights shall constitute a waiver of any other option, power or right. Maker hereby waives presentment of payment, protest, and all notices or demands in connection with the delivery, acceptance, performance, default or endorsement of this Note. Acceptance by the Payee of less than the full amount due and payable hereunder shall in no way limit the right of the Payee to require full payment of all sums due and payable hereunder in accordance with the terms hereof.
4.
Modifications
. No term or provision contained herein may be modified, amended or waived except by written agreement or consent signed by the party to be bound thereby.
5.
Cumulative Rights and Remedies; Usury
. The rights and remedies of Payee expressed herein are cumulative and not exclusive of any rights and remedies otherwise available under this Note, the Security Agreement, the Guarantee or applicable law (including at equity). The election of Payee to avail itself of any one or more remedies shall not be a bar to any other available remedies, which Maker agrees Payee may take from time to time. If it shall be found that any interest due hereunder arising from an Event of Default shall violate applicable laws governing usury, the applicable rate of interest due hereunder shall be reduced to the maximum permitted rate of interest under such law.
6.
Collection Expenses
. If Payee shall commence an action or proceeding to enforce this Note, then Maker shall reimburse Payee for its costs of collection and reasonable attorney fees incurred with the investigation, preparation and prosecution of such action or proceeding.
7.
Severability
. If any provision of this Note is declared by a court of competent jurisdiction to be in any way invalid, illegal or unenforceable, the balance of this Note shall remain in effect, and if any provision is inapplicable to any person or circumstance, it shall nevertheless remain applicable to all other persons and circumstances.
8.
Successors and Assigns
. This Note shall be binding upon Maker and its successors and shall inure to the benefit of the Payee and its successors and assigns. The term "Payee" as used herein, shall also include any endorsee, assignee or other holder of this Note.
9.
Lost or Stolen Promissory Note
. If this Note is lost, stolen, mutilated or otherwise destroyed, Maker shall execute and deliver to the Payee a new promissory note containing the same terms, and in the same form, as this Note. In such event, Maker may require the Payee to deliver to Maker an affidavit of lost instrument and customary indemnity in respect thereof as a condition to the delivery of any such new promissory note. Any costs incurred pursuant to this paragraph shall be the responsibility of the Payee.
10.
Due Authorization
. This Note has been duly authorized, executed and delivered by Maker and is the legal obligation of Maker, enforceable against Maker in accordance with its terms. The shares of the Maker’s common stock if issued to Payee, when issued will be validly issued, fully paid and non-assessable.
11.
Governing Law
. All questions concerning the construction, validity, enforcement and interpretation of this Note shall be governed by and construed and enforced in accordance with the internal laws of the State of California, without regard to the principles of conflicts of law thereof. Each of Maker and Payee agree that all legal proceedings concerning the interpretations, enforcement and defense of this Note shall be commenced in the Courts of the State of California, the courts of the United States of America for the State of California, and appellate courts from any thereof (the "California
Courts
"). Each of Maker and Payee hereby irrevocably submit to the exclusive jurisdiction of the California Courts for the adjudication of any dispute hereunder (including with respect to the enforcement of this Note), and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is improper. Each of Maker and Payee hereby irrevocably waive personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to the other at the address in effect for notices to it under this Note and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. Each of Maker and Payee hereby irrevocably waive, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Note or the transactions contemplated hereby.
Maker may prepay this Note in whole or in part at any time, and from time to time, without being required to pay any penalty or premium for such privilege. The undersigned signs this Note as a maker and not as a surety or guarantor or in any other capacity.
Dated:
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Payee Accepted By:
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/s/ Mitchell Felder
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Mitchell Felder
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3694 McConnell Rd, Hermitage PA 16148
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Dated:
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Maker By:
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/s/ William Hartman
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William Hartman as CEO of
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Premier Biomedical, Inc.
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Wiring Instructions for delivery of funds:
PREMIER BIOMEDICAL, INC.
THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (“THE ACT”), OR THE SECURITIES LAWS OF ANY STATE, AND MAY NOT BE OFFERED, SOLD, TRANSFERRED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO (i) AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT AND ANY APPLICABLE STATE LAWS, (ii) TO THE EXTENT APPLICABLE, RULE 144 UNDER THE ACT (OR ANY SIMILAR RULE UNDER THE ACT RELATING TO THE DISPOSITION OF SECURITIES), OR (iii) AN OPINION OF COUNSEL, IF SUCH OPINION SHALL BE REASONABLY SATISFACTORY TO COUNSEL TO THE ISSUER, THAT AN EXEMPTION FROM REGISTRATION UNDER THE ACT AND APPLICABLE STATE LAW IS AVAILABLE.
Premier PPM Common No. [__]
COMMON STOCK PURCHASE WARRANT
THIS IS TO CERTIFY that, for value received, [insert], a [insert], or its assigns (the “Holder”) is entitled, subject to the terms and conditions set forth herein, to purchase from Premier Biomedical, Inc., a Nevada corporation (the “Company”) up to [insert] ([insert]) fully paid and nonassessable shares of common stock of the Company (the “Warrant Securities”) at the initial price of $0.10 per share but subject to adjustment as provided in Section 3 below, (the “Exercise Price”), upon payment by cashier’s check or wire transfer of the Exercise Price for such shares of the Common Stock to the Company at the Company’s offices.
This Warrant was purchased by Holder in connection with the sale by the Company of units (the “Units”) pursuant to a Confidential Private Placement Memorandum dated January 14, 2011 (the “Private Placement”). Each Unit consists of one (1) share of the Company’s common stock, and one (1) warrant.
1.
Exercisability
. This Warrant may be exercised in whole or in part at any time, or from time to time, between (a) the date that the Company’s common stock is first eligible to be traded on any stock exchange or over the counter market, including without limitation the over the counter bulletin board or the OTCQB or OTCQX maintained by OTC Markets (the “Trigger Date”), and (b) the date which is one year after the Trigger Date; however, the Holder may exercise this Warrant only if and to the extent that Holder is, as of the date of exercise, the record holder of corresponding shares of common stock purchased in the Units as part of the Private Placement. The Holder’s rights to exercise this Warrant may be exercise pro-rata in accordance with the percentage of the underlying shares owned by the Holder on the date of exercise. The Holder may exercise this Warrant by presentation and surrender hereof to the Company of a notice of election to purchase duly executed and accompanied by payment by check or wire transfer of the Exercise Price.
Premier PPM Common No. 3
2.
Manner of Exercise
. In case of the purchase of less than all the Warrant Securities, the Company shall cancel this Warrant upon the surrender hereof and shall execute and deliver a new warrant of like tenor for the balance of the Warrant Securities. Upon the exercise of this Warrant, the issuance of certificates for securities, properties or rights underlying this Warrant shall be made forthwith (and in any event within three (3) business days thereafter) without charge to the Holder including, without limitation, any tax that may be payable in respect of the issuance thereof: provided, however, that the Company shall not be required to pay any tax in respect of income or capital gain of the Holder.
If and to the extent this Warrant is exercised, in whole or in part, the Holder shall be entitled to receive a certificate or certificates representing the Warrant Securities so purchased, upon presentation and surrender to the Company of the form of election to purchase attached hereto duly executed, and accompanied by payment of the purchase price.
3.
Adjustment in Number of Shares
.
(A)
Adjustment for Reclassifications
. In case at any time or from time to time after the issue date the holders of the Common Stock of the Company (or any shares of stock or other securities at the time receivable upon the exercise of this Warrant) shall have received, or, on or after the record date fixed for the determination of eligible stockholders, shall have become entitled to receive, without payment therefore, other or additional stock or other securities or property (including cash) by way of stock split, spin-off, reclassification, combination of shares or similar corporate rearrangement (exclusive of any stock dividend of its or any subsidiary’s capital stock), then and in each such case the Holder of this Warrant, upon the exercise hereof as provided in Section 1, shall be entitled to receive the amount of stock and other securities and property which such Holder would hold on the date of such exercise if on the issue date he had been the holder of record of the number of shares of Common Stock of the Company called for on the face of this Warrant and had thereafter, during the period from the issue date, to and including the date of such exercise, retained such shares and/or all other or additional stock and other securities and property receivable by him as aforesaid during such period, giving effect to all adjustments called for during such period. In the event of any such adjustment, the Exercise Price shall be adjusted proportionally.
(B)
Adjustment for Reorganization, Consolidation, Merger
. In case of any reorganization of the Company (or any other corporation the stock or other securities of which are at the time receivable on the exercise of this Warrant) after the issue date, or in case, after such date, the Company (or any such other corporation) shall consolidate with or merge into another corporation or convey all or substantially all of its assets to another corporation, then and in each such case the Holder of this Warrant, upon the exercise hereof as provided in Section 1 at any time after the consummation of such reorganization, consolidation, merger or conveyance, shall be entitled to receive, in lieu of the stock or other securities or property to which such Holder would be entitled had the Holder exercised this Warrant immediately prior thereto, all subject to further adjustment as provided herein; in each such case, the terms of this Warrant shall be applicable to the shares of stock or other securities or property receivable upon the exercise of this Warrant after such consummation.
Premier PPM Common No. 3
4.
No Requirement to Exercise
. Nothing contained in this Warrant shall be construed as requiring the Holder to exercise this Warrant prior to or in connection with the effectiveness of a registration statement.
5.
No Stockholder Rights
. Unless and until this Warrant is exercised, this Warrant shall not entitle the Holder hereof to any voting rights or other rights as a stockholder of the Company, or to any other rights whatsoever except the rights herein expressed, and, no dividends shall be payable or accrue in respect of this Warrant.
6.
Registration Rights
. The Company intends to undertake the filing of a registration statement with the Securities and Exchange Commission (the “Commission”) for the resale of all the Warrant Securities within three months of the date of issuance hereof.
7.
Exchange
. This Warrant is exchangeable upon the surrender hereof by the Holder to the Company for new warrants of like tenor representing in the aggregate the right to purchase the number of Warrant Securities purchasable hereunder, each of such new warrants to represent the right to purchase such number of Warrant Securities as shall be designated by the Holder at the time of such surrender.
Upon receipt by the Company of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of this Warrant, and, in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it and reimbursement to the company of all reasonable expenses incidental thereto, and upon surrender and cancellation hereof, if mutilated, the Company will make and deliver a new warrant of like tenor and amount, in lieu hereof.
8.
Elimination of Fractional Interests
. The Company shall not be required to issue certificates representing fractions of securities upon the exercise of this Warrant, nor shall it be required to issue scrip or pay cash in lieu of fractional interests. All fractional interests shall be eliminated by rounding any fraction up to the nearest whole number of securities, properties or rights receivable upon exercise of this Warrant.
9.
Reservation of Securities
. The Company shall at all times reserve and keep available out of its authorized shares of Common Stock or other securities, solely for the purpose of issuance upon the exercise of this Warrant, such number of shares of Common Stock or other securities, properties or rights as shall be issuable upon the exercise hereof. The Company covenants and agrees that, upon exercise of this Warrant and payment of the Principal Value, all shares of Common Stock and other securities issuable upon such exercise shall be duly and validly issued, fully paid, non-assessable and not subject to the preemptive rights of any stockholder.
Premier PPM Common No. 3
10.
Notices to Holder
. If at any time prior to the expiration of this Warrant or its exercise, any of the following events shall occur:
(a) the Company shall take a record of the holders of any class of its securities for the purpose of entitling them to receive a dividend or distribution payable otherwise than in cash, or a cash dividend or distribution payable otherwise than out of current or retained earnings, as indicated by the accounting treatment of such dividend or distribution on the books of the Company; or
(b) the Company shall offer to all the holders of a class of its securities any additional shares of capital stock of the Company or securities convertible into or exchangeable for shares of capital stock of the Company, or any option or warrant to subscribe therefor; or
(c) a dissolution, liquidation or winding up of the Company (other than in connection with a consolidation or merger) or a sale of all or substantially all of its property, assets and business as an entirety shall be proposed.
then, in any one or more said events, the Company shall give written notice of such event to the Holder at least fifteen (15) days prior to the date fixed as a record date or the date of closing the transfer books for the determination of the stockholder entitled to such dividend, distribution, convertible or exchangeable securities or subscription rights, or entitled to vote on such proposed dissolution, liquidation, winding up or sale. Such notice shall specify such record date or the date of closing the transfer books, as the case may be.
11.
Transferability
. This Warrant may be transferred or assigned by the Holder without notice or approval by the Company.
12.
Informational Requirements
. The Company will transmit to the Holder such information, documents and reports as are generally distributed to stockholders of the Company concurrently with the distribution thereof to such stockholders.
13.
Notice
. Notices to be given to the Company or the Holder shall be deemed to have been sufficiently given if delivered personally or sent by overnight courier or messenger, or by facsimile transmission. Notices shall be deemed to have been received on the date of personal delivery or facsimile transmission. The address of the Company and of the Holder shall be as set forth in the Company’s books and records.
14.
Consent to Jurisdiction and Service
. The Company consents to the jurisdiction of any court of the State of Florida, and of any federal court located in Florida, in any action or proceeding arising out of or in connection with this Warrant. The Company waives personal service of any summons, complaint or other process in connection with any such action or proceeding and agrees that service thereof may be made at the location provided in Section 13 hereof, or, in the alternative, in any other form or manner permitted by law. Pasco County, Florida shall be proper venue.
Premier PPM Common No. 3
15.
Successors
. All the covenants and provisions of this Warrant shall be binding upon and inure to the benefit of the Company, the Holder and their respective legal representatives, successors and assigns.
16.
Attorneys Fees
. In the event the Investors or any holder hereof shall refer this Warrant to an attorney to enforce the terms hereof, the Company agrees to pay all the costs and expenses incurred in attempting or effecting collection hereunder, including reasonable attorney's fees, whether or not suit is instituted.
17.
Governing Law
. THIS WARRANT SHALL BE GOVERNED, CONSTRUED AND INTERPRETED UNDER THE LAWS OF THE STATE OF FLORIDA, WITHOUT GIVING EFFECT TO THE RULES GOVERNING CONFLICTS OF LAW.
IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by the signature of its President and to be delivered in Port Richey, Florida.
Dated: [insert], 2011
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Premier Biomedical, Inc.,
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a Nevada corporation
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By:
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William A. Hartman
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Its:
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President
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Premier PPM Common No. 3
[FORM OF ELECTION TO PURCHASE]
The undersigned, the holder of the attached Warrant, hereby irrevocably elects to exercise the purchase right represented by this Warrant Certificate for, and to purchase securities of Premier Biomedical, Inc. and herewith makes payment of $__________ therefor, and requests that the certificates for such securities be issued in the name of, and delivered to ___________________, whose address is ______________________________.
Dated: ____________________, 20___
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By:
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Its:
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(Signature must conform in all respects to name of holder as specified on the face of the Warrant Certificate)
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(Insert Social Security or Other
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Identifying Number of Holder)
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Premier PPM Common No. 3
Exhibit 23.1
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Premier Biomedical, Inc.
We consent to the use of our report dated June 13, 2011 with respect to the financial statements of Premier Biomedical, Inc. as of December 31, 2010, and the related statements of operations, stockholders' equity (deficit) and cash flows for the period from inception on May 10, 2010, through December 31, 2010, and to the reference to our firm under the caption “Experts”, included in the Registration Statement on Form S-1 filed by Premier Biomedical, Inc. on June 14, 2011.
/s/ M&K CPAS, PLLC
Houston, Texas
June 14, 2011